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

Exercise 48

Kitchen Electrics uses a perpetual inventory system.he following are three recent merchandising transactions:

Instructions
a.repare journal entries to record these transactions assuming that Kitchen Electrics records purchases of merchandise at:
1.et cost
2.ross invoice price
b.ssume that Kitchen Electrics did not pay Polar Co.ithin the discount period but instead paid the full invoice price on May 10.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 Kitchen Electric's bill-paying procedures.hich accounting method-net cost or gross invoice price-provides you with the most useful information Explain.