Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October. Prepare entries to record these transactions assuming that Piere Imports records invoices (
a) at gross amounts and (
b) at net amounts.
Oct.
2
Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2/10, n/30.
10
Received a credit memorandum toward the return of $500 ($490 net) of merchandise that it purchased on October 2.
17
Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2/10, n/30.
27
Paid for the merchandise purchased on October 17, less the discount.
31
Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)
