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Hirsch Company buys inventory for $20,000 on terms of 2/10, n/30. It pays within the discount period. I have already solved the first question and
Hirsch Company buys inventory for $20,000 on terms of 2/10, n/30. It pays within the discount period.
I have already solved the first question and inserted it below. Please help me with the second question.
1. | Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Hirsch uses a periodic inventory system. (Already solved and inserted below) |
2. | Prepare the journal entries to record the purchase and payment under both the (a) gross price and the (b) net price methods. Assume that Hirsch uses a perpetual inventory system. |
1. 3/14 | Inventory | 20,000 | |||
2 | Accounts Payable | 20,000 | |||
3. 3/22 | Accounts Payable | 20,000 | |||
4 | Purchase Discounts Taken | 400 | |||
5 | Cash | 19,600 |
|
1. 3/14 | Inventory | 19,600 | |||
2 | Accounts Payable | 19,600 | |||
3. 3/22 | Accounts Payable | 19,600 | |||
4 | Cash | 19,600 |
|
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