Accounts Payable and Cash Discounts On January' 4, 2016, Dunbar Company purchased, on credit, 2,500 television sets

Question:

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.
Required:
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. Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...