Chapter 8, Problem 8E

To determine

Introduction: Credit terms of 3/15, n/60 means, pay the bill amount within 15 days and avail a discount of 3%. Else, the entire amount has to be paid within 60 days.

(a)

To record: The purchase, return, and payment using the gross method, assuming that C uses the perpetual method for recording merchandise transactions.

To determine

(b)

To record: The purchase, return, and payment using the gross method, assuming that Cruise uses the periodic method for recording merchandise transactions.

To determine

(c)

To compute: The amount at which the purchase will be recorded.