Question: A firm purchased merchandise inventory costing $15,000 with credit terms of 2/10, n/30 on November 7. On November 15, the firm paid 1/3 of amount due. The remaining balance was paid on December 7.
Required:
[A] Make journal entries related to this transaction using gross method of recording purchases.
[B] Record the journal entries related to this transaction using net method of recording purchases.
[C] Which method do you prefer? Explain your reasoning.