On May 3 Morgan Furnace Company, which uses a perpetual inventory system, purchased $8,000 of furnaces from Tam Mfg. on credit with terms 3/10, n/30.

Required: (1) Using T-accounts and the gross method, record Morgan’s purchase and payment assuming

(a) Morgan paid for the purchase on May 12, and instead

(b) Morgan paid for the purchase on May 30.

(2) Using T-accounts and the net method, record Morgan’s purchase and payment assuming

(a) Morgan paid for the purchase on May 12, and instead

(b) Morgan paid for the purchase on May 30.

 TYK-1