On January 4, 2019, Dunbar Company purchased, on credit, 2,000 television sets at $700 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1. Required: 1. Prepare the journal entries on Dunbar Company’s books, assuming that it uses the net price method to record its merchandise. (Dunbar uses a perpetual inventory system.) 2. Next Level Discuss the conceptual advantage of the net price method compared to the gross price method.

On January 4, 2019, Dunbar Company purchased, on credit, 2,000 television sets at $700 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining...

On January 4, 2019, Dunbar Company purchased, on credit, 2,000 television sets at $700 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1.

Required:

1.	Prepare the journal entries on Dunbar Company’s books, assuming that it uses the net price method to record its merchandise. (Dunbar uses a perpetual inventory system.)
2.	Next Level Discuss the conceptual advantage of the net price method compared to the gross price method.

Jun 10, 2022

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On January 4, 2019, Dunbar Company purchased, on credit, 2,000 television sets at $700 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining...

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