Problem 6.4A Comparison of Net Cost and Gross Price Methods L.O. 3, 6 Italy Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: June 10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10,n/30. June 15 Sold one of these televisions for $550 cash. June 20 Paid the account payable to Mitsu Industries within the discount period. Instructions a. Prepare journal entries to record these transactions assuming that Italy records purchases of goods at: 1. Net cost 2. Gross invoice price b. Assume that Italy did not pay Mitsu Industries within the discount period but instead paid the full invoice price on July 10. Prepare journal entries to record this payment assuming that the original liability had been recorded at 1. Net cost 2. Gross invoice price (Round your answers to the nearest whole dollar amount. Omit the "S" sign in your response.) General Journal a. a. (Round your answers to the nearest whole dollar amount. Omit the "S" sign in your response.) General Journal Date (1) Net cost June 10 (Click to select) (Click to select) (Mitsu Industries) To record purchase of TVs. 15 (Click to select) (Click to select) Sold Mitsu TV for cash. 15 (Click to select) (Click to select) To record cost of TV sold. 20 (Click to select) (Mitsu Industries) (Click to select) Paid account within discount period. (2) Gross invoice price June 10 (Click to select) (Click to select) (Mitsu Industries) To record purchase of TVs. 15 (Click to select) (Click to select) Sold Mitsu TV for cash. 15 (Click to select) (Click to select) To record cost of TV sold. 20 (Click to select) (Mitsu Industries) (Click to select) (Click to select) Paid account payable. b. (1) Net cost July 10 (Click to select) (Mitsu Industries) (Click to select) (Click to select) Made payment after discount period had expired. (2) Gross invoice price July 10 (Click to select) (Mitsu Industries) (Click to select) Made payment after discount period had expired. 1110110