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UNIVERSAL APPLIANCES uses a perpetual system The following are the recent merchandising transactions :   2017 Dec 17 Purchased 10 juicer machines from Westpoint on credit. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30. Dec 18 Sold two of these units for $450 each. Dec 27 Paid the account payable to Westpoint within te discount period.   Required :   Record journal entries assuming that UNIVERSAL APPLIANCES records purchases at : Net Cost Gross Invoice Price Assume that UNIVERSAL APPLIANCES did not pay within discount period. Record journal entries for making payment on Dec 29 at : Net Cost Method Gross Invoice Price Method

UNIVERSAL APPLIANCES uses a perpetual system The following are the recent merchandising transactions :   2017 Dec 17 Purchased 10 juicer machines from Westpoint on credit. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30. Dec 18 Sold two of these units for $450 each. Dec 27 Paid the account payable to Westpoint within te discount period.   Required :   Record journal entries assuming that UNIVERSAL APPLIANCES records purchases at : Net Cost Gross Invoice Price Assume that UNIVERSAL APPLIANCES did not pay within discount period. Record journal entries for making payment on Dec 29 at : Net Cost Method Gross Invoice Price Method

FINANCIAL ACCOUNTING
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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UNIVERSAL APPLIANCES uses a perpetual system The following are the recent merchandising transactions :

 

2017

Dec 17 Purchased 10 juicer machines from Westpoint on credit. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30.

Dec 18 Sold two of these units for $450 each.

Dec 27 Paid the account payable to Westpoint within te discount period.

 

Required :

 

  • Record journal entries assuming that UNIVERSAL APPLIANCES records purchases at :
  1. Net Cost
  2. Gross Invoice Price
  • Assume that UNIVERSAL APPLIANCES did not pay within discount period. Record journal entries for making payment on Dec 29 at :
  1. Net Cost Method

Gross Invoice Price Method

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