Question

please help, last person got it wrong!

Assuming that Flounder uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to decimal places g. 6,578 Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanati Feb. 11 (Inventory Accounts Payable Accounts Payable TINTOTD: T Inventory Accounts Payable Inventory Cash

Answer 1

Journal entry to record purchases using perpetual method
Date	Account titles and Explanation	Debit	Credit
1-Feb	Inventory (9,300*90%)	$8,370
	Accounts payable		$8,370
	(To record inventory purchased)
4-Feb	Accounts payable (2,700*90%)	$2,430
	Inventory		$2,430
13-Feb	Accounts payable (8370-2430)	$5,940
	Inventory (5940*3%)		$178
	Cash (5940-178)		$5,762
Journal entry to record purchases using periodic method
Date	Account titles and Explanation	Debit	Credit
1-Feb	Purchases (9,300*90%)	$8,370
	Accounts payable		$8,370
	(To record inventory purchased)
4-Feb	Accounts payable (2,700*90%)	$2,430
	Purchases return and allowance		$2,430
13-Feb	Accounts payable (8370-2430)	$5,940
	Purchase discounts (5940*3%)		$178
	Cash (5940-178)		$5,762
Calculation of amount of purchases if net method was used
	Purchase price (List price)	$9,300
	Less: Trade discount @ 10%	$930	9300*10%
	Purchases after trade discount	$8,370
	Cash discount @ 3%	$251
	Net price	$8,119