Problem 6.4A Comparison of Net Cost and Gross Price Methods L.O. 3, 6Lamprino Appliance uses a perpetual inventory system. The following are three recent merchandising transactions:June10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30.June 15 Sold one of these televisions for $450 cash.June 20 Paid the account payable to Mitsu Industries within the discount period.Instructionsa. Prepare journal entries to record these transactions assuming that Lamprino records purchases of merchandise at:1. Net cost2. Gross invoice priceb. Assume that Lamprino did not pay Mitsu Industries within the discount period but instead paid the full invoice price on July 10. Prepare journal entries to record this payment assuming that the original liability had been recorded at:1. Net cost2. Gross invoice price
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