KE uses a perpetual inventory system. The following are three recent merchandise transactions. Apr. 10 Purchased 10 refrigeratos from Polar Co. on account invoce price, $6,000 per unit a total of $60,000. These term of purchase were 2/10, n/30 Apr. 15 Sold of these refrigerators for $900 cash. Apr 20 Paid account payables to Polar Co. within discount period. I need a. Prepare journal entries to record these transactions assuming that KE purchases of merchandise at: 1. net cost 2. gross invoice price b. Assume that KE did not pay Polar Co. within discount period but instead paid the full invoice price on May 10. Prepare the journal entries to record this payment assuming that the original liability had been recorded at : 1. Net cost 2.Gross invoice proce c. Assume that you are evaluating the efficiency KE;s bill paying procedure with accounting method net cost or gross invoice price. provides you with the most useful information? Explain.
KE uses a perpetual inventory system. The following are three recent merchandise transactions.
Apr. 10 Purchased 10 refrigeratos from Polar Co. on account invoce price, $6,000 per unit a total of $60,000. These term of purchase were 2/10, n/30
Apr. 15 Sold of these refrigerators for $900 cash.
Apr 20 Paid account payables to Polar Co. within discount period.
I need
a. Prepare
1. net cost
2. gross invoice price
b. Assume that KE did not pay Polar Co. within discount period but instead paid the full invoice price on May 10. Prepare the journal entries to record this payment assuming that the original liability had been recorded at :
1. Net cost
2.Gross invoice proce
c. Assume that you are evaluating the efficiency KE;s bill paying procedure with accounting method net cost or gross invoice price. provides you with the most useful information? Explain.
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