Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 52

Comparison of Net Cost and Gross Price Methods
Mary's TV uses a perpetual inventory system.he following are three recent merchandising transactions:
Mar. Purchased eight TVs from Whosa Industries on account.nvoice price, $350 per unit, for a total of $2,800.he terms of purchase were 2/10, n/30.
Mar.1 Sold two of these televisions for $600 cash.
Mar.6 Paid the account payable to Whosa Industries within the discount period.
Instructions
a.repare journal entries to record these transactions assuming that Mary's records purchases of merchandise at:
1.et cost
2.ross invoice price
b.ssume that Mary's did not pay Whosa Industries within the discount period but instead paid the full invoice price on April 6.repare journal entries to record this payment assuming that the original liability had been recorded at:
1.et cost
2.ross invoice price
c.ssume that you are evaluating the efficiency of Mary's bill-paying procedures.hich accounting method-net cost or gross invoice price-provides you with the most useful information Explain.