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Some of the transactions of Crane Company during August are listed below. Crane uses the...

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Accounting

Some of the transactions of Crane Company during August are listed below. Crane uses the periodic inventory method.

August 10 Purchased merchandise on account, $9,800, terms 2/10, n/30.
13 Returned part of the purchase of August 10, $1,000, and received credit on account.
15 Purchased merchandise on account, $13,800, terms 1/10, n/60.
25 Purchased merchandise on account, $18,300, terms 2/10, n/30.
28 Paid invoice of August 15 in full.

1. Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: Prepare general journal entries to record the transactions

2. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: Prepare general journal entries to enter the transactions

3. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time

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