assuming yhey purchades are recorded at net wmounts and that discounts lost are treated as financial expense:

1. prepare general journal entires for the transactions

2. prepare the adjusting entry becessary on august 31 if financial statements are ti he prepared at that time

3.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