Problem 6.4A (Algo) Comparison of Net Cost and Gross Price Methods (LO6-3, L06-6) Kitchen Electrics uses a perpetual inventory system. The following are three recent merchandising transactions Apr. 10 Purchased 10 refrigerators from Petar con on account. Invoice price, $350 per unit, for a total of $3,588. The terms of purchase were 2/10, 1/30. Apr.15 sold one of these refrigerators for $550 cash. Apr.20 Paid the account payable to Polar Co. Within the discount period. Required: a. Prepare journal entries to record these transactions assuming that Kitchen Electrics records purchases of merchandise at 1. Net cost 2. Gross invoice price b. Assume that Kitchen Electrics did not pay Polar Co within the discount period but instead paid the full invoice price on May 10, Prepare journal entries to record this payment assuming that the original liability had been recorded at 1. Net cost 2. Gross invoice price Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg: Reg 02 Prepare journal entries to record these transactions assuming that Kitchen Electrics records purchases of merchandise at net cost. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction lit Journal entry worksheet > Record the purchase of 10 refrigerators at netcost. to the recrets 17 OLI Q 1 7 ? . ; 2 3 4 5 6 7 8 ( 9 Q W E R T Y C