Dunbar Company sells electronics and on January 4, 2016, purchased 2,500 television sets at $800 each,...

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Dunbar Company sells electronics and on January 4, 2016, purchased 2,500 television sets at $800 each, on credit. 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. 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.) GENERAL JOURNAL DATE ACCOUNT TITLE 1 2 3 4 6 7 PAGE 9 POST. REF. DEBIT CREDIT Discuss the conceptual advantage of the net price method compared to the gross price method. The method because it values the inventory and the related liability at the amount that the company expects to pay to acquire the goods. method is theoretically superior to the gross price net price General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 501 Purchases Discounts Lost 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings Dunbar Company sells electronics and on January 4, 2016, purchased 2,500 television sets at $800 each, on credit. 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. 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.) GENERAL JOURNAL DATE ACCOUNT TITLE 1 2 3 4 6 7 PAGE 9 POST. REF. DEBIT CREDIT Discuss the conceptual advantage of the net price method compared to the gross price method. The method because it values the inventory and the related liability at the amount that the company expects to pay to acquire the goods. method is theoretically superior to the gross price net price General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 501 Purchases Discounts Lost 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings