Problemoriole industries purchased 7800 of merchandise on, Ask an Expert

Accounting

Problem

Oriole Industries purchased $7,800 of merchandise on February 1, 2017, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,100 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.

Assuming that Oriole uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method.

At what amount would the purchase on February 1 be recorded if the net method were used?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92771876

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