Question

Sheridan Industries purchased $11,000 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Your answer is correct. Assuming that Sheridan 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 0 for the amounts. Round answers to O decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Feb. 1 Inventory 9900 Accounts Payable 9900 Accounts Payable Feb. 4 2070 2070 Inventory Accounts Payable Feb. 13 7830 Cash 7595 235 Inventory
I only need help figuring out the Net Price in part 3 of the question. Please explain how you figured out the answer. Thank you.

Answer 1

Under net method, amount recorded initially is net of all discounts.
Net price is the price after deduction of trade and cash discount.
3
Gross Price	11000
Less: Trade Discount	1100	=11000*10%
Less: Cash discount	297	=(11000-1100)*3%
Net price	9603