MODULE 5 INVENTORY PERIODIC AND GROSS METHODPlease solve and record the following two transactions and explain your answer. 1) Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with each other. One particular problem, though, is giving them trouble. Galen wants to use the gross method for recording purchases of merchandise with discounts while Gordon thinks the only logical method is the net method. To help them resolve their problems, they need to see the information each method gives them and get some feedback on what they can learn from each method. Provide journal entries to record each activity for both the gross and net methods. Purchased and received $15,000 of merchandise, terms 1/15, n/45. Record using the gross method. 2) Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with each other. One particular problem, though, is giving them trouble. Galen wants to use the gross method for recording purchases of merchandise with discounts while Gordon thinks the only logical method is the net method. To help them resolve their problems, they need to see the information each method gives them and get some feedback on what they can learn from each method. Provide journal entries to record each activity for both the gross and net methods. Returned merchandise with a cost of $500 because we could not use it. Record using the gross method.
MODULE 5 INVENTORY PERIODIC AND GROSS METHOD
Please solve and record the following two transactions and explain your answer.
1) Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with each other. One particular problem, though, is giving them trouble. Galen wants to use the gross method for recording purchases of merchandise with discounts while Gordon thinks the only logical method is the net method. To help them resolve their problems, they need to see the information each method gives them and get some feedback on what they can learn from each method. Provide
Purchased and received $15,000 of merchandise, terms 1/15, n/45. Record using the gross method.
2) Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with each other. One particular problem, though, is giving them trouble. Galen wants to use the gross method for recording purchases of merchandise with discounts while Gordon thinks the only logical method is the net method. To help them resolve their problems, they need to see the information each method gives them and get some feedback on what they can learn from each method. Provide journal entries to record each activity for both the gross and net methods.
Returned merchandise with a cost of $500 because we could not use it. Record using the gross method.
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