Reference no: EM132757818

Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.

Oct. 2 Purchased merchandise at a $4,200 price ($4,116 net), invoice dated October 2, terms 2/10, n/30.

10 Returned $600 ($588 net) of merchandise purchased on October 2, and debited its accounts payable for that amount.

17 Purchased merchandise at a $7,800 price ($7,644 net), invoice dated October 17, terms 2/10, n/30.

27 Paid for the merchandise purchased on October 17, less the discount.

31 Paid for the merchandise purchased on October 2.

Problem (a) Prepare entries to record the above transactions assuming that Piere Imports records invoices at gross amounts.

1.) Purchased merchandise at a $4,200 price ($4,116 net), invoice dated October 2, terms 2/10, n/30.

2.) Returned $600 ($588 net) of merchandise purchased on October 2, and debited its accounts payable for that amount.

3.) Purchased merchandise at a $7,800 price ($7,644 net), invoice dated October 17, terms 2/10, n/30.

4.) Paid for the merchandise purchased on October 17, less the discount.

5.) Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)