Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.

August 10 Purchased merchandise on account, $20,300, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,100, and received credit on account. 15 Purchased merchandise on account, $25,300, terms 1/10, n/60. 25 Purchased merchandise on account, $33,100, terms 2/10, n/30. 28 Paid invoice of August 15 in full.

(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken:

(1) Prepare general journal entries to enter the transactions.

Date	Acct. Titles & Explanation	Debit & Credit
Aug 10
Aug 13
Aug 15
Aug 25
Aug 28

(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions.

Date	Account Titles & Explain	Debit	Credit
Aug 10
Aug 13
Aug 15
Aug 25
Aug 28

(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time

Acct Title	Debit	Credit