On December 3, Ainge Printing purchased inventory listed at $7,4 1 answer below »

On December 3, Ainge Printing purchased inventory listed at $7,400 from Craig Paper Supply. Terms of the purchase were 3/10, n/20. Ainge Printing also purchased inventory from Tippetts Ink Wholesale on December 10 for a list price of $10,300. Terms of the purchase were 3/10, n/30. On December 16, Ainge paid both suppliers for these purchases. Ainge does not use a perpetual inventory system.
1. Give the entries to record the purchases and invoice payments assuming that
(a) The net method is used and
(b) The gross method is used.
2. Assume that Ainge has not paid either of the invoices at December 31. Give the year-end adjusting entry if the net method is used.

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