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Piere imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.

October 2 Purchased merchandise at a price ( net), invoice dated October 2, terms .
October 10 Returned ( net) of merchandise purchased on October 2 and debited its accounts payable for that anount.
October 17 Purchased merchandise at a price ( net), invoice dated October 17 , terms .
October 27 paid for the merchandise purchased on October 17, less the discount.
October 31 Paid for the merchandise purchased on October 2.
(a) Prepare entries to record the above transactions assuming that Piere Imports records invoices at gross amounts.

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Journal entry worksheet
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Transaction Entries

1. October 2: Purchase of Merchandise
   • Debit Merchandise Inventory for the gross amount of the purchase.
   • Credit Accounts Payable for the same amount.
   • Entry:
2. October 10: Return of Merchandise
   • Debit Accounts Payable for the gross amount of the return.
   • Credit Merchandise Inventory for the same amount.
   • Entry:
3. October 17: Purchase of Merchandise
   • Debit Merchandise Inventory for the gross amount of the purchase.
   • Credit Accounts Payable for the same amount.
   • Entry:
4. October 27: Payment for Merchandise Purchased on October 17
   • Calculate the discount for the payment made within the discount period.
   • Discount = of =
   • Amount paid =
   • Debit Accounts Payable for the amount owed.
   • Credit Cash for the amount paid.
   • Entry:
5. October 31: Payment for Merchandise Purchased on October 2
   • Calculate the discount for the payment made within the discount period.
   • Discount = of =
   • Amount paid =
   • Debit Accounts Payable for the amount owed.
   • Credit Cash for the amount paid.
   • Entry:

Summary of Journal Entries

1. October 2:
   • Debit Merchandise Inventory:
   • Credit Accounts Payable:
2. October 10:
   • Debit Accounts Payable:
   • Credit Merchandise Inventory:
3. October 17:
   • Debit Merchandise Inventory:
   • Credit Accounts Payable:
4. October 27:
   • Debit Accounts Payable:
   • Credit Cash:
   • Credit Merchandise Inventory:
5. October 31:
   • Debit Accounts Payable:
   • Credit Cash:
   • Credit Merchandise Inventory: