187.Akron Company purchased merchandise inventory costing $10,000 with credit terms of 2/10, n/30 on March 7. On March 15, the company paid 1/2 of the amount due. The remaining balance was paid on April 7.
Required:
a. Record the journal entries related to this transaction using the gross method of recording purchases.
b. Record the journal entries related to this transaction using the net method of recording purchases.
a.
188.On August 25, Barrymore Co. purchased $5,000 worth of merchandise on terms 2/10, n/30; on September 4, the amount due was paid. Using the net method of recording purchases, prepare general journal entries to record (a) the purchase on August 25, and (b) the cash payment on September 4.
189.A company had the following transactions during January:
Jan. 2Purchased merchandise, invoice price of $16,000, with terms 2/10, n/30.
4Received a credit memorandum for $4,000, the invoice price on merchandise returned from the purchase of January 2.
12Purchased merchandise, invoice price of $15,000, with terms 3/15, n/30.
26Paid for the merchandise purchased on January 12.
30Paid for the merchandise purchased on January 2.
Using the net method of recording purchases, prepare the journal entries to record these January transactions.
190.A company records purchase invoices at net amounts. On March 5, the company recorded merchandise purchased, invoice price $17,000, terms 2/15, n/60. On March 24, this company discovered that the invoice had been incorrectly filed and the discount had been lost. The invoice was paid on April 1. Prepare journal entries to record these events.