Whispering industries purchased $8,100 of merchandise on february 1, 2025, 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

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Whispering industries purchased $8,100 of merchandise on february 1, 2025, 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 Whispering uses the perpetual method for recording merchandise transactions, record the purchase, return, and
payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round
answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent
manually. List all debit entries before credit entries.)
Your answer is correct.
Date
Feb. 1
Feb. 4
Feb. 13 ✓
Account Titles and Explanation
Inventory
Accounts Payable
Accounts Payable
Inventory
Accounts Payable
Cash
Inventory
Debit
7290
1890
5400
Credit
7290
11
1890
5238
162
Transcribed Image Text:Assuming that Whispering uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Your answer is correct. Date Feb. 1 Feb. 4 Feb. 13 ✓ Account Titles and Explanation Inventory Accounts Payable Accounts Payable Inventory Accounts Payable Cash Inventory Debit 7290 1890 5400 Credit 7290 11 1890 5238 162
(b)
Assuming that Whispering uses the periodic method for recording merchandise transactions, record the purchase, return, and
payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round
answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent
manually. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:(b) Assuming that Whispering uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
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