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Answer all parts complete with full steps to get 100% feedback!! Max Company purchased $ 30,000 merchandise on June 1, 2020, subject to a trade
Answer all parts complete with full steps to get 100% feedback!!
Max Company purchased $ 30,000 merchandise on June 1, 2020, subject to a trade discount of 10% and with credit terms of 2/15, and n/60. It returned merchandise worth $10,000 (gross price before trade or cash discount) on June 4. The invoice was paid on June 13. Required: a. Assuming that the company uses the periodic method, for recording merchandise transactions, record the purchase, return, and payment using the gross method. b. Assuming that the company uses the perpetual method for recording merchandise transactions, record the purchase, return and payment using the gross method. c. At what amount would the purchase on June 1 be recorded if net method was used Step by Step Solution
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