Exercise $8-11$

$($Algo$)$ Trade and purchase discounts; the gross method and the net method compared $[$LO$8-3]$ Comfort Company purchased $110$ units of inventory on November $17,2024.$ The units have a list price of $$400$ each, but Comfort was given a $20\%$ trade discount. The terms of the sale were $3/10,$ n$/30.$ Comfort uses a perpetual inventory system. Exercise $8-11($Algo$)$ Parts $1$ and $2$ Required: Prepare the journal entries to record the $($a$)$ purchase by Comfort on November $17$ and $($b$)$ payment on November $26,2024.$ Comfort uses the gross method of accounting for purchase discounts. Prepare the journal entry for the payment, assuming instead that it was made on December $15,2024.$

$1.$ Prepare the journal entries to record the $($a$)$ purchase by Comfort on November $17$ and $($b$)$ payment on November $26,2024.$ Comfort uses the gross method of accounting for purchase discounts.

$2.$ Prepare the journal entry for the payment, assuming instead that it was made on December $15,2024.$

$3.$ Alternatively, record payment on December $15$th using the gross method of accounting for purchase discounts.