Perpetual System- Recording Purchases and Payments with Discounts using Gross Method Track Bicycles Inc. purchased merchandise inventory on February 1, 2020, for $425,000 on account, terms 2/10, n/30. The company maintains a perpetual inventory system and accounts for purchases using the gross method. The full balance of $425,000 was paid on February 9, 2020. Record the purchases entry on February 1, 2020, and the payment entry on February 9, 2020. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). Date Account Name Feb. 1, 2020 Inventory Accounts Payable Feb. 9, 2020 Deferred Revenue Purchase Discounts Cash Dr. Cr. 425,000 425,000 0 0 0 0 0 0