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Question

Lamprino Appliance uses a perpetual inventory system. The following are three recent merchandising transactions:
June 10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300\$ 300 per unit, for a total of $3,000\$ 3,000. The terms of purchase were 2/10,n/302 / 10, \mathrm{n} / 30.
June 15 Sold one of these televisions for $450\$ 450 cash.
June 20 Paid the account payable to Mitsu Industries within the discount period.

Instructions
a. Prepare journal entries to record these transactions assuming that Lamprino records purchases of merchandise at:

  1. Net cost
  2. Gross invoice price

Solution

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In this exercise, we are asked to provide the journal entries.

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