Problem 1: Tiger Industries purchased $12,000 of merchandise on February 1, 2012, subject to a trade discount of 10% ad with credit terms of 3/15, n/60. It returned $3,000 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.
Required:
(a) Assuming that Tiger uses the perpetual method for recording merchandise transaction, record the purchase, return, and payment using the gross method.
(b) Assuming that Tiger uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the net method.