Reference no: EM132826153

Question - The following transactions were completed by Jefferson Corporation during December 2020:

Dec. 16 Purchased merchandise from Intel Company, terms 2/10, n/30; FOB Shipping point. Intel Co. paid freight.

Received goods from Celeron Corp, terms 3/10, 2/15/, n/30.

Paid the account with Intel Co. in full

Paid the account with Celeron Co. in full.

Required -

1. Record the foregoing transactions in books of Jefferson Corp. using the

i. Gross method of recording purchases (do not include amounts)

ii. Net Method of recording purchases. (do not include amounts)

2. What is the entry on December 31 assuming Jefferson uses the net method, and the obligation is still unpaid on the said date?