EFFECTS OF DISCOUNTS ON SALES AND PURCHASES

Helmkamp Products sells golf clubs and accessories to pro shops. Gross sales in 2009 were $1,150,200 (Helmkamp’s list price) on terms 3/15, n/45. Customers paid for $822,800 (Helmkamp’s list price) of the merchandise within the discount period and the remaining $327,400 after the end of the discount period. Helmkamp records purchases and sales using the gross method to account for sales discounts.