Cruise Industries purchased $10,800 of merchandise on February 1, 2014, subject to a trade discount of 9% and with credit terms of 3/15, n/60. It returned $3,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.

Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method.

Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method.

At what amount would the purchase on February 1 be recorded if the net method were used?

Date Account Titles and Explanation Feb. 1 Inventory Feb. 4 Accounts Payable Accounts Payable Inventory Feb. 13 Accounts Payable Cash Inventory Debit ONO Credit Conono Date Account Titles and Explanation Feb. 1Purchases Feb. 4 Feb. 13 Accounts Payable Accounts Payable Purchase Returns and Allov Accounts Payable Cash Purchase Discounts Debit DOODO Credit OOOOOO Net price