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Please show detail steps Carlisle Industries purchased $21,600 of merchandise from Belinda Corporation on February 1, 2014, subject to a trade discount of 5% and
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Carlisle Industries purchased $21,600 of merchandise from Belinda Corporation on February 1, 2014, subject to a trade discount of 5% and with credit terms of 2/15, n/60. Carlisle returned $5,000 (gross price before trade or cash discount) on February 4. The inventory cost of Belinda Co. was $18,000 on February 1, 2014. Belinda Co. used the net method for its sales discount. The sales returns and allowance on February 4 was determined to be material (see Slide 7-24 for more details on SR&A.) Required a) Assume that Carlisle paid the invoice on February 13 and uses the periodic method to record inventory transactions. Use the following table to record the (1) purchase on 02/01; (2) return on 02/04; and (3) payment on 02/13 by using the gross method. b) Assume that Carlisle paid the invoice on February 13 and that Belinda Co. uses the perpetual method for recording merchandising transactions. Use the following table to record the (1) sales on 02/01; (2) return on 02/04; and (3) receipts on 02/13 by using the net method. Remember to use the allowance method to record sales discounts and sales returns. The cost of inventory returned on 02/04 was $4,200. c) What if Carlisle paid the invoice on February 23?? Record Carlisle's payment and Belinda's receipt. Buyer - Carlisle - Periodic Inventory; Gross Seller - Belinda - Perpetual Inventory; Net Date 02/01 Sales & Purchase 02/04 Return 02/13 Payment c) What if Carlisle paid the invoice on February 23?? 02/23 PaymentStep by Step Solution
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