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 $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13 Assuming that Whispering uses the periodic method for recording merchandise transactions, record the purchase, return, andpayment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Roundanswers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indentmanually. List all debit entries before credit entries.)Account Titles and ExplanationDateFeb. 1Your answer is correct.Feb. 4Feb. 13PurchasesAccounts PayableAccounts PayablePurchase Returns and AllowancesAccounts PayableCashPurchase DiscountsDebit7290[]]18905400Credit729018905238162 At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 2 decimal places,e.g. 6,578.25.)Net price$LA

The net method of purchase in accounting is akin to grabbing a discount at the store. It records…

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 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.)
Account Titles and Explanation
Date
Feb. 1
Your answer is correct.
Feb. 4
Feb. 13
Purchases
Accounts Payable
Accounts Payable
Purchase Returns and Allowances
Accounts Payable
Cash
Purchase Discounts
Debit
7290
[]]
1890
5400
Credit
7290
1890
5238
162

At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 2 decimal places,
e.g. 6,578.25.)
Net price
$
LA

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