Required information

Exercise $8-9($Algo$)$ Purchase discounts; the gross method $[$L$08-3]$

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On July $15,2024,$ the Niche Car Company purchased $1,900$ tires from the Treadwell Company for $$40$ each. The terms of

the sale were $4/10,$n$/30.$ Niche uses a perpetual inventory system and the gross method of accounting for purchase

discounts.

Exercise $8-9($Algo$)$ Part $3$

If Niche instead uses a periodic inventory system, explain any changes to the journal entries created in Parts $1$ and $2.$

The July $15$ entry would include a debit to the

account instead of to

The July $23$ entry would include a credit to the

account instead of to