(B) Treatment of Purchase DiscountsGross Method vs. Net Method ABC Company uses a periodic inventory system, and had the following transactions during the current year. (1) Purchase cost of $10,000, terms 2/10, n/30 (2) Invoices of $4,000 are paid within discount period. (3) Invoices of $6,000 are paid after discount period. (1) Gross method Account Titles and Explanation Debit (2) Net method Account Titles and Explanation Credit Debit Credit Date (1) Date (1) (2) (2) (3) (3)