Question 1. If my company sells electronics products and on January 4, 2016, I purchased 2,500 television sets at $800 each, on credit.

Question 1.

If my company sells electronics products and on January 4, 2016, I purchased 2,500 television sets at $800 each, on credit. Terms of the purchase were 2/10, n/30. I paid for 20% of these sets on January 13 and the remaining 80% on February 1.

Please:

1. How can I Prepare the journal entries on My Company’s books, assuming that it uses the net price method to record its merchandise. (If I uses a perpetual inventory system.) 
2. What is the conceptual advantage of the net price method compared to the gross price method.

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