On January $4,$ Dunbar Company purchased, on credit, $2,500$ television sets at $$600$ each. Terms of the purchase were $2/10,$ n$/30.$ Dunbar paid for $25\%$ of these sets on January $13$ and the remaining $75\%$ on February $1.$

Required:

$1.$ Prepare the journal entries on Dunbar Company$$s books, assuming that it uses the net price method to record its merchandise. $($Dunbar uses a perpetual inventory system.$)$

$2.$ Next Level Discuss the conceptual advantage of the net price method compared to the gross price method.