Exercise $5-29$C $($Algo$)$ Net & gross methods: Recording purchases, sales, returns, and discounts$$buyer and seller LO P$7$

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Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.

$1.$ October $2-$Purchased merchandise at a $$4,800$ price $($$$4,704$ net$),$ invoice dated October $2,$ terms $2/10,$ n$/30.$

$2.$ October $10$R$-$eturned $$900($$$882$ net$)$ of merchandise purchased on October $2$ and debited its accounts payable for that amount.

$3.$ October $17$Purchased merchandise at a $$9,000$ price $($$$8,820$ net$),$ invoice dated October $17,$ terms $2/10,$ n$/30.$

$4.$ October $27$Paid for the merchandise purchased on October $17,$ less the discount.October $31$Paid for the merchandise purchased on October $2.$

Exercise $5-29$C $($Algo$)$ Part $1$ Gross method

$($a$)$ Prepare entries to record the above transactions assuming that Piere Imports records invoices at gross amounts.

Exercise $5-29$C $($Algo$)$ Part $2$ Net method

$($b$)$ Prepare entries to record the above transactions assuming that Piere Imports records invoices at net amounts.