107.Patty's Pet Store purchased merchandise on October 10, 2006, at a price of $35,000, subject to credit terms of 2/10, n30. Patty's uses the gross method for recording purchases and uses perpetual inventory system.Required:(a.) Prepare the journal entry to record the purchase.(b.) Prepare the journal entry to record the payment of one-half the invoice amount on October 18, 2006.(c.) Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2006. Answer:
Learning Objective: 1 Level of Learning: 3108.Boston Dollar Store uses the gross method to record purchase discounts, and uses a perpetual inventory system. Boston engaged in the following transactions during April:4/12Purchased $15,000 in merchandise subject to terms of 2/10, n30. The goods were shipped f.o.b. shipping point.4/13Received a billing from Orange Freight Lines for $300 for the 4/12 purchase.4/15Returned $1,000 of merchandise from the 4/12 purchase.4/20Paid balances due from 4/12 purchase.Required: Prepare journal entries to record the above transactions.
Learning Objective: 1 Level of Learning: 3Spiceland/Sepe/Tomassini, Intermediate Accounting, Fourth Edition45