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Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Comp

ID: 2465035 • Letter: T

Question

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30.

Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the gross 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.)

1.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.

2.

Record the cash collection on November 26.

Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, assuming that the gross 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.)

1.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.

2.

Record the cash collection on December 15.

Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, 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.)

1.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the net method.

2.

Record the cash collection on November 26.

Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, 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.)

1.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the net method.

2.

Record the cash collection on December 15.

Required:

Explanation / Answer

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https://financeaccountsonlinetutoring-tracycompanyjournalentries.googledrives/

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