a.assuming thst ourchases are recorded at gross amounts and that discounts are to he recorded when taken:

1. proare genersl journal entries to record transactions.

2. describe how the various items would be shown in the financial statements.

P8.3 (LO 2) Excel (Purchases Recorded Gross and Net) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $12,000, terms 2/10,n/30. 13 Returned part of the purchase of August 10, $1,200, and received credit on account. 15 Purchased merchandise on account, $16,000, terms 1/10, n/60. 25 Purchased merchandise on account, $20,000, terms 2/10, n/30. 28 Paid invoice of August 15 in full