### Transaction Details for Bramble Industries**Transaction Overview:**- **Purchase Date:** February 1, 2025- **Merchandise Cost:** $9,300- **Trade Discount:** 10%- **Credit Terms:** 3/15, n/60- **Return Date:** February 4 (Returned Amount: $2,300 before discount)- **Payment Date:** February 13**Instructions for Record Keeping:**Assuming Bramble Industries uses the perpetual inventory system and applies the gross method for transactions, follow these steps to record:1. **Purchase of Merchandise:** - Record the initial merchandise purchase considering the 10% trade discount. 2. **Return of Merchandise:** - Account for the return of $2,300 worth of goods before discount.3. **Payment Processing:** - Process the payment adhering to the cash or early payment discount, if applicable. **Recording Structure:**- **Date Column:** Date of each transaction.- **Account Titles and Explanation Column:** Descriptive titles and explanations for each entry.- **Debit Column:** Record debit amounts when applicable.- **Credit Column:** Record credit amounts when applicable.**Note:** - If no entry is required, select "No entry" and enter 0 for amounts.- Round all amounts to two decimal places (e.g., 6,578.25).- Credit account titles will be automatically indented when the amount is entered; do not indent manually.- List all debit entries before credit entries.This structure will help ensure accurate and orderly financial record-keeping for the transaction and associated adjustments.

(a) Perpetual inventory systems or continuous inventory systems are terms used in business and accounting/accountancy to describe systems of inventory where data on inventory quantity and availability is updated continuously/in real-time as part of conducting business.Using the Perpetual inventory method: Date Account title and explanation Debit Credit Feb 01 Inventory ($9300-$930) $8,370 Accounts Payable $8,370 Feb 04 Accounts payable ($2300-$230) $2,070 Inventory $2,070 Feb 13 Accounts payable ($8370-$2070) $6,300 Cash ($6300-$162) $6,111 Inventory ($6300x3%) $189

Business

Accounting

Bramble Industries purchased $9,300 of merchandise on February 1, 2025, 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. (a) Assuming that Bramble 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 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

Bramble Industries purchased $9,300 of merchandise on February 1, 2025, 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. (a) Assuming that Bramble 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 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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