Question

Bramble Industries purchased $9,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Bramble 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 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO Assuming that Bramble 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 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 0 decimal places, e.g. 6,578.)Net price $

Answer 1

Answer:

The first two solutions are attached in the excel document.

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation:

Solution 3:

Amount at which purchase on February 1 be recorded if the net method were used = $9,100*90%*97% = $7,944

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