A. Suppose Boeing makes a purchase of $1,000,000 worth of goods at terms 2/10 n/30. Further suppose that Boeing does not have enough cash to make the payment in 10 days. If they borrow the cash from a bank to make the payment within 10 days and will pay the bank back in 2 months with interest (12% perannum) how would it record the purchase, borrowing and payment (include ALL TRANSACTIONS the borrowing, the payment to the supplier, and the repayment) under both the gross and net methods?

B. The example above is a traditional type of financing. If instead, Boeing enters into an arrangement with a bank whereby the bank offers to purchase the receivables held by the supplier, the arrangement is called supply-chain financing. Suppose the bank offers Boeing the terms 1/10 n/60. Should Boeing change its initial recording (THIS IS YOUR OPINION, although you can use codification support to bolster your view). How?

NOTE: Use FASB codification to support your answers.