Boston Dollar Store Uses the Gross Method to Record Purchase

question 63

Essay

Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:
4/12 Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.
4/13 Received a billing from Orange Freight Lines for $300 for the 4/12 purchase.
4/15 Returned $1,000 of merchandise from the 4/12 purchase.
4/20 Paid balances due from 4/12 purchase.
Required:
Prepare journal entries to record the above transactions.

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Definitions:

Speakerphone

A device that enables a telephone to function without the need to hold the handset, incorporating a microphone and loudspeaker for hands-free communication.

Conference Call

A telephone or online meeting that connects multiple participants in different locations for discussions or presentations.

Regional Sales Team

A regional sales team is a group of sales professionals responsible for managing and growing sales within a specific geographic area or region.

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment.