P8-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March are listed below. Duder uses the periodic inventory method. March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 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, n/60. Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (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 financial expenses: (1) Prepare general journal entries to enter the transactions.
P8-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March are listed below. Duder uses the periodic inventory method. March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 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, n/60. Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general
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