PARRISH Pg. 173 PURCHASE DISCOUNTS GROSS METHOD Would you please explain the following transactions that are listed in both Periodic and Perpetual Format. Explain why each account is used and why it is DR or CR...etc. Receipt of Invoice Periodic Dr. Purchases 1,000Cr. Accounts Payable 1,000PerpetualDr Inventory 1,000Cr Accounts Payable 1,000 Payment within the 10-day discount period PeriodicDr. Accounts Payable 1,000Cr. Cash 980Cr. Purchase Discounts 20PerpetualDr. Accounts Payable 1,000Cr. Cash 980Cr. Inventory 20 Payment after discount period Periodic Dr Acounts Payable 1,000 Cr. Cash 1,000 Perpetual Dr. Accounts Payable 1,000 Cr. Cash 1,000
PARRISH Pg. 173 PURCHASE DISCOUNTS GROSS METHOD
Would you please explain the following transactions that are listed in both Periodic and Perpetual Format. Explain why each account is used and why it is DR or CR...etc.
Receipt of Invoice
Periodic
Dr. Purchases 1,000
Cr. Accounts Payable 1,000
Perpetual
Dr Inventory 1,000
Cr Accounts Payable 1,000
Payment within the 10-day discount period
Periodic
Dr. Accounts Payable 1,000
Cr. Cash 980
Cr. Purchase Discounts 20
Perpetual
Dr. Accounts Payable 1,000
Cr. Cash 980
Cr. Inventory 20
Payment after discount period
Periodic
Dr Acounts Payable 1,000
Cr. Cash 1,000
Perpetual
Dr. Accounts Payable 1,000
Cr. Cash 1,000
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