Cruise Industries purchased $9,160 of merchandise on February 1, 2014, subject t
ID: 2445541 • Letter: C
Question
Cruise Industries purchased $9,160 of merchandise on February 1, 2014, subject to a trade discount of 9% and with credit terms of 3/15, n/60. It returned $4,200 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.
Your answer is correct.
Assuming that Cruise 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.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Inventory
8336.00
Accounts Payable
8336.00
Feb. 4
Accounts Payable
3822.00
Inventory
3822.00
Feb. 13
Accounts Payable
4514.00
Inventory
134.00
Cash
4380.00
Show List of Accounts
Link to Text
Your answer is correct.
Assuming that Cruise 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.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Purchases
8336.00
Accounts Payable
8336.00
Feb. 4
Accounts Payable
3822.00
Purchase Returns and Allowances
3822.00
Feb. 13
Accounts Payable
4514.00
Purchase Discounts
134.00
Cash
4379.00
Show List of Accounts
Link to Text
Your answer is incorrect. Try again.
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
$
Cruise Industries purchased $9,160 of merchandise on February 1, 2014, subject to a trade discount of 9% and with credit terms of 3/15, n/60. It returned $4,200 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.
Your answer is correct.
Assuming that Cruise 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.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Inventory
8336.00
Accounts Payable
8336.00
Feb. 4
Accounts Payable
3822.00
Inventory
3822.00
Feb. 13
Accounts Payable
4514.00
Inventory
134.00
Cash
4380.00
Show List of Accounts
Link to Text
Your answer is correct.
Assuming that Cruise 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.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Purchases
8336.00
Accounts Payable
8336.00
Feb. 4
Accounts Payable
3822.00
Purchase Returns and Allowances
3822.00
Feb. 13
Accounts Payable
4514.00
Purchase Discounts
134.00
Cash
4379.00
Show List of Accounts
Link to Text
Your answer is incorrect. Try again.
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
$
Explanation / Answer
9160*91%=8335.6
8335.6*97%=8085.532 or 8086
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