Question 6

Nash Industries purchased $9,300 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60.

It returned $3,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13

Assuming that Nash uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method.

Date Account Titles and Explanation Debit Credit

1-Feb

4-Feb

13-Feb

Assuming that Nash uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method.

Date Account Titles and Explanation Debit Credit

1-Feb

4-Feb

13-Feb

At what amount would the purchase on February 1 be recorded if the net method were used?

Net price