6-20

M6-19 Recording Journal Entries for Purchase Discounts (Gross Method) On October 5, your company buys and receives inventory costing $5,000, on terms 2/30, n/60. On October 20, your company pays the amount owed relating to the October 5 purchase. Prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the gross method. M6-20 Recording Journal Entries for Purchase Discounts (Net Method) Using the information in M6-19, prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the net method. M6-19 Recording Journal Entries for Purchase Discounts (Gross Method) On October 5, your company buys and receives inventory costing $5,000, on terms 2/30, n/60. On October 20, your company pays the amount owed relating to the October 5 purchase. Prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the gross method. M6-20 Recording Journal Entries for Purchase Discounts (Net Method) Using the information in M6-19, prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the net method. M6-21 Recording Journal Entries for Sales and Sales Discounts (Gross Method) Using the information in M6-9, prepare the journal entries needed at (a) time of sale and (b) collection of payment from the customer, assuming the company uses a perpetual inventory system with the gross method of recording sales discounts