1.) Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30.

The terms of 4/10, n/30 means that Lakeside Hotel will have to pay full price if payment is not made:

2.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30.

The terms of 4/10, n/30 means that Lakeside Hotel may take a ___ discount of the invoice if the invoice is paid within the discount period.

3.) Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the GROSS method of recording purchases, complete the following:

When recording the purchase of the inventory on Feb 3, the amount of the inventory is:

Inventory $?

Accounts Payable

4.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the GROSS method of recording purchases, complete the following:

When recording the payment of the invoice within the discount period, the amount of the Purchase Discounts is:

Accounts Payable

Cash

Purchase Discounts $?

5.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the GROSS method of recording purchases, complete the following:

When recording the payment of the invoice after the discount period, the amount of Accounts Payable is:

Accounts Payable $?

Cash

6.) A major disadvantage of the ____ method is that it does not reveal discounts that are lost.

7.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the NET method of recording purchases, complete the following:

When recording the purchase of the inventory on Feb 3, the amount of the inventory is:

Inventory $?

Accounts Payable

8.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the NET method of recording purchases, complete the following:

When recording the payment of the invoice within the discount period, the amount of the Accounts Payable is:

Accounts Payable $?

Cash

9.)

Lakeside Hotel purchased inventory from Valley Packing, receiving an invoice dated February 3, 20X4, for $2,000 with terms 4/10, n/30. Using the NET method of recording purchases, complete the following:

When recording the payment of the invoice after the discount period, the amount of Discounts Lost is:

Accounts Payable

Discounts Lost $?

Cash

10.) Lakeside Hotel failed to pay for its new china in time to take advantage of the discount the supplier offered. The hotel uses the NET method of recording purchases. How many accounts would be involved in the journal entries for the china purchase and payment?