Required information Tracy Company, a manufacturer of air conditioners, sold 220

Question

Required information Tracy Company, a manufacturer of air conditioners, sold 220 units to Thomas Company on November 17, 2018. The units have a list price of $400 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2018, assuming that the net method of accounting for cash discounts is used. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018 assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

3a.the following will be the required journal entries:

3b.

(cash = 220 units * $440 *(1-0.25trade discount) =>$66,000.

interest revenue = 66,000 - 64,680 =>1,320)

date accounts debit credit november 17 accounts receivable a/c $64,680 ..............To sales revenue a/c 64,680 (amount = 220 units *$400*(1-0.25 trade discount) * (1-0.02 discount) november 26 cash a/c 64,680 ................To accounts receivable a/c 64,680

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.