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.