Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January:January 6: Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30.January 8: Returned $200 worth of defective units and received full credit.January 15: Paid the amount due, less the returned items.Prepare journal entries to record each of the preceding transactions.
What will be an ideal response?
| January 6: Merchandise Inventory…………….. | 4,000 |
| Accounts Payable…………… | 4,000 |
| January 8: Accounts Payable…………………. | 200 |
| Merchandise Inventory……. | 200 |
| January 15: Accounts Payable…………………. | 3,800 |
| Merchandise Inventory…….. | 76 |
| Cash………………………... | 3,724 |
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