Accounting 23 To answer Part A & Part B of this question, you need to refer to the following is chart of accounts and (2) use gross method to record purchase of merchandise. (1) chart of Account 1. Accounts Payable 8. Purchase 2. Auounts Receviable Purchase Discounts 3 lush 10. Purchase Returns and Allowances 4. Cost of Goods sold 11. Sales Discounts 5. Freight in 12 sales Revenue 13. Sales Returns and Allowances 7. Inventory 6. Freight out (2) Gross method is a method of recording purchases, which intially records at full invoice price ignoring any cash discounts Part A ABC Jewelers completed the following trans outrons in Hpril 2011. ABC Jewelers uses the perpetuery inventory system. Prepare journal entries for the transactions. April 2| ABC purchased merchandise for $20,000. The credit term was 2/10, net 30 4 ABC returned $3,400 of defective merchandise from the April 2 purchase 5 ABC sold $9,000 of merchandise on account. The credit term was 315, netbo. ABC's cost for the merchandise sold was $5,500 10 ABC paid the balance for the merchandise purchased on April 2. 15 ABL is customer returned $3000 of the merchandise sold on April 5, ABC's cost for the merchandise returned was $1750 payment for the balance of the April 5 transaction Part 3 Coffee Art Supply uses a periodic inventory system. The company had the following transactions during August, 2021, Prepare journal entres to record these transactions. Ang 5 coffee Art Supply purchased *5.322 of merchandise on account, credit term was 3/12, net 45. 18 ABC received A 9 Coffee Art Supply paid transportation costs of $880 for the Aug 5 purchase in cash. 1o Coffee Hut Supply returned $1,299 of defective inerchandise that had been purchased on Huys. 18 coffee Art Supply paid for the merchandise purchased on Augs