Tahoe Ski Company uses the perpetual inventory system and the net 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 Inventory3,920 
Accounts Payable3,920

January 8:Accounts Payable196 
Merchandise Inventory196

January 15:Accounts Payable3,724 
Cash3,724

Business

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What will be an ideal response?

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Business

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Business