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Perpetual and Periodic SystemsRecording Inventory-Related Entries using the Net Method The following...

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Accounting

Perpetual and Periodic SystemsRecording Inventory-Related Entries using the Net Method
The following transactions all relate to Sharper Inc.s purchase of merchandise inventory on December 10.
Purchased inventory on December 10 with a list price of $3,000, a trade discount of 20%, and with terms 2/10, n/30.
Returned $400 of inventory to the supplier on December 15.
Reduced accounts payable by $1,600 due to a $1,600 cash payment to the supplier on December 19; this payment was within the cash discount period.
Paid the remaining balance to the supplier on January 5 of the following year.
Perpetual inventory systems
Periodic inventory systems
a. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the perpetual inventory system and the net method to record purchases. Include any adjusting entry required
b. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the periodic inventory system and the net method to record purchases. Include any adjusting entry required on December 31.

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