Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January:
January 6: Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30.
January 8: Returned $200 worth of defective units and received full credit.
January 15: Paid the amount due, less the returned items.
Prepare journal entries to record each of the preceding transactions.

Question

Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January:
January 6: Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30. 
January 8: Returned $200 worth of defective units and received full credit.
January 15: Paid the amount due, less the returned items.
Prepare journal entries to record each of the preceding transactions.

Quizplus · Accepted Answer

The Answer of Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January:
January 6: Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30. 
January 8: Returned $200 worth of defective units and received full credit.
January 15: Paid the amount due, less the returned items.
Prepare journal entries to record each of the preceding transactions.

Tahoe Ski Company Uses the Perpetual Inventory System and the Gross