Problem 4 (3 points) (CLO. 3.2) Some of the transaction at Canon Company during April are listed below. Canon uses the periodic inventory method. April 10 Purchased merchandise on account, $15,000, terms 2/10, n/30. April 13 Returned part of the purchase of August 10, $1,500, and received credit on account. April 15 Purchased merchandise on account, $20,000, terms 1/10, n/60 April 28 Paid invoice of April 15 in full. Instructions (a) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken. Describe how the various items would be shown in the financial statements. (b) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses. Prepare the adjusting entry necessary on April 31 if financial statements are to be prepared at that time.

Problem 4 (3 points) (CLO. 3.2) Some of the transaction at Canon Company during April are listed below. Canon uses the periodic inventory method. April 10 Purchased merchandise on account, $15,000, terms 2/10,n/30. April 13 Returned part of the purchase of August 10, $1,500, and received credit on account. April 15 Purchased merchandise on account, $20,000, terms 1/10,n/60 April 28 Paid invoice of April 15 in full. Instructions (a) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken. Describe how the various items would be shown in the financial statements. (b) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses. Prepare the adjusting entry necessary on April 31 if financial statements are to be prepared at that time