Describe How the Transactions Listed Would Be Handled Applying the Gross

question 80

Essay

Describe how the transactions listed would be handled applying the gross approach method and the net approach method.For example: A $750 invoice with a 3/10 net 30 discount.
$\begin{array}{llcc} \text {Transaction } & \text { Gross Method } & \text {Net Method } \\\hline \text { (a) Record original transaction } &&\\ \text { (b) Returned purchases } &&\\ \text { (c) Discounts taken } &&\\ \text {(d) Discounts not taken } &&\\\end{array}$

---

Definitions:

Voting Stock

Shares that grant the holder the right to vote on company matters, typically influencing board elections and corporate policy.

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Net Income

The income a company retains following the deduction of all costs and taxes from its total earnings.

Goodwill

An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.