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 Inventory | 3,920 |
| Accounts Payable | 3,920 |
| January 8: | Accounts Payable | 196 |
| Merchandise Inventory | 196 |
| January 15: | Accounts Payable | 3,724 |
| Cash | 3,724 |
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What will be an ideal response?
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