23. Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory nethod. nstructions a. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: 1. Prepare general journal entries to record the transactions. 2. Describe how the various accounts in the above journal entries (except cash) wou shown in the financial statements. b. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expens 1. Prepare general journal entries to enter the transactions. 2. Prepare the adjusting entry necessary on August 31 if financial statements are to prepared at that time. 3. Describe how the various accounts in the above journal entries (except cash) wou shown in the financial statements. c. Which of the two methods do you prefer and why