Question: Accounts Payable and Cash Discounts On January 4 2016 Dunbar

Accounts Payable and Cash Discounts On January' 4, 2016, Dunbar Company purchased, on credit, 2,500 television sets at $800 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January' 13 and the remaining 80% on February' 1.
1. Prepare the journal entries on Dunbar Company's books, assuming that it uses the net price method to record
its merchandise. (Dunbar uses a perpetual inventory system.)
2. Next Level Discuss the conceptual advantage of the net price method compared to the gross price method.

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  • CreatedOctober 05, 2015
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