B Problems 34PABB (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during Marchar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17 Purchased merchandise on account, $16,000, terms 2/10, n/30.26 Paid invoice of March 17 in full.27 Purchased merchandise on account, $36,000, terms 2/10, r/60.March 8 Purchased merchandise on account, $15,000, terms 1/10, /20.(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded whentaken:Instructions(1) Prepare general journal entries to record the transactions.(2) Describe how the various items would be shown in the financial statements.(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financialexpenses:(1) Prepare general journal entries to enter the transactions.(2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared atthat time.(3) Describe how the various items would be shown in the financial statements,(c) Which of the two methods do you prefer and why?25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerningpart WA6 for the month of September was as follows.SalesPurchasesSeptember 417September 1 (balance on hand)300@ $12.00200@ 12.103.12300@ 12.2527300@ 12.30500@ 12.3022300@ 12.40Instructions(a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in-ventory records are kept in units only. Carry unit costs to the nearest cent.(1) First-in, first-out (FIFO).(2) Last-in, first-out (LIFO).(3) Average cost.(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with-drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry averageunit costs to four decimal places.25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventorycard for Arctic Inc. for the first month of operations is as follows.ReceivedIssued,No. of UnitsBalance,No. of UnitsDateNo. of UnitsUnit CostMarch1.to 0 02,5001,8008.6.051,4000001,400126.200091,8003,300226.252,400316.50 B Problems 3P&-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March4.ar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17 Purchased merchandise on account, $16,000, terms 2/10, n/30.March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30.26 Paid invoice of March 17 in full.27 Purchased merchandise on account, $36,000, terms 2/10, n/60.(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded whentaken:Instructions(1) Prepare general journal entries to record the transactions.(2) Describe how the various items would be shown in the financial statements.(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financialexpenses:(1) Prepare general journal entries to enter the transactions.(2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared atthat time.(3) Describe how the various items would be shown in the financial statements.(c) Which of the two methods do you prefer and why?25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerningpart WA6 for the month of September was as follows.SalesPurchasesSeptember 1 (balance on hand)3300@ $12.00200@ 12.10September 41712300@ 12.2527300@ 12.3022500@ 12.30300@ 12.40Instructions(a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in-ventory records are kept in units only. Carry unit costs to the nearest cent.(1) First-in, first-out (FIFO).(2) Last-in, first-out (LIFO).(3) Average cost.(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with-drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry averageunit costs to four decimal places.25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventorycard for Arctic Inc. for the first month of operations is as follows.ReceivedIssued,No. of UnitsBalance,No. of UnitsDateNo. of UnitsUnit CostMarch1.$6.002,0002,5001,800to 009.8.6.05121,4006.201,4000092,4006.2522to w002001,8003,3002,1006.50311,200

Name: B Problems 34PABB (Purchases Recorded Gross and Net) Some of the tran
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Description: B Problems 34PABB (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during Marchar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17

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Journal entries (JE) refers to recording of the transactions into the books of accounts or books of…