Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13 Assuming that Whispering uses the perpetual method for recording merchandise transactions, record the purchase, return, andpayment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Roundanswers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indentmanually. List all debit entries before credit entries.)Your answer is correct.DateFeb. 1Feb. 4Feb. 13 ✓Account Titles and ExplanationInventoryAccounts PayableAccounts PayableInventoryAccounts PayableCashInventoryDebit729018905400Credit72901118905238162 (b)Assuming that Whispering uses the periodic method for recording merchandise transactions, record the purchase, return, andpayment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Roundanswers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indentmanually. List all debit entries before credit entries.)DateAccount Titles and ExplanationDebitCredit

Under a periodic inventory system cost of goods sold will be calculated at the end of the period…

Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13

Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

100%

Assuming that Whispering 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.)
Your answer is correct.
Date
Feb. 1
Feb. 4
Feb. 13 ✓
Account Titles and Explanation
Inventory
Accounts Payable
Accounts Payable
Inventory
Accounts Payable
Cash
Inventory
Debit
7290
1890
5400
Credit
7290
11
1890
5238
162

(b)
Assuming that Whispering uses the periodic 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.)
Date
Account Titles and Explanation
Debit
Credit

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