journal entries

Collaborations Net Escape Computers uses a perpetual inventory system. The following are three recent merchandising transactions: August 10 Purchased 15 Computers from HP Computers on account. Invoice price, P64,500 per unit, for a total of P967,500. The terms of purchase were 2/10, n/30. August 15 Sold one of these computers for P77,400 cash. Augsut 20 Paid the account payable to HP computers within discount period Instructions: a. Prepare journal entries to record these transactions assuming that Net Escape records purchases of merchandise at: 1) Net Cost 2) Gross Invoice Price b. Assume that Net Escape did not pay HP Computers within the discount period but instead paid the full invoice price on Sept 10. Prepare journal entries to record this payment assuming that original liability had been recorded at: 1) Net Cost 2) Gross Invoice Price