Problem 4: Some of the transaction at Canon Company during April are listed below. Canon uses the periodic inventory method. April 10 Purchased merchandise on account, $15,000, terms 2/10, n/30. April 13 Returned part of the purchase of August 10, $1,500, and received credit on account. April 15 Purchased merchandise on account, $20,000, terms 1/10, n/60 April 28 Paid invoice of April 15 in full. Instructions (a) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken. (b) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses.

Transcribed Image Text:

Problem 4: Some of the transaction at Canon Company during April are listed below. Canon uses the periodic inventory method. April 10 Purchased merchandise on account, $15,000, terms 2/10, n/30. April 13 Returned part of the purchase of August 10, $1,500, and received credit on account. April 15 Purchased merchandise on account, $20,000, terms 1/10, n/60 April 28 Paid invoice of April 15 in full. Instructions (a) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken. (b) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial exnenses. Problem 4: Some of the transaction at Canon Company during April are listed below. Canon uses the periodic inventory method. April 10 Purchased merchandise on account, $15,000, terms 2/10, n/30. April 13 Returned part of the purchase of August 10, $1,500, and received credit on account. April 15 Purchased merchandise on account, $20,000, terms 1/10, n/60 April 28 Paid invoice of April 15 in full. Instructions (a) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken. (b) Prepare general journal entries to record the transactions. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial exnenses.