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

Question

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2018. 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, n30. quired: Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018 uming that the gross method of accounting for cash discounts is used Prepare the journal entries to record the sale on November 17 Iignore cost of goods) and collection on December 15, 2018 uming that the gross method of accounting for cash discounts is used Complete this question by entering your answers in the tabs below Req i Req 2 epare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, ssuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, elect "No journal entry required" in the first account field.) Record the cash collection on November 26. Note: Enter debits before credits. Debit Credit Date November 26, 2018 General Journal Record entry Clear entry View general journal

Explanation / Answer

Journal Entry S. No. Date Pariculars Dr. Amt. Cr. Amt. 1-a 17-Nov Accounts Receivable    42,000.00 $600 X 100 Units X 70%    Sales    42,000.00 (To record the sales) 1-b 26-Nov Cash    41,160.00 $42,000 X 98% Cash Discounts          840.00 $42,000 X 2%    Accounts Receivable    42,000.00 (To record the cash received) 2-a 17-Nov Accounts Receivable    42,000.00 $600 X 100 Units X 70%    Sales    42,000.00 (To record the sales) 2-b 15-Dec Cash    42,000.00    Accounts Receivable    42,000.00 (To record the cash received) 3-a-1 17-Nov Accounts Receivable    41,160.00 $42,000 X 98%    Sales    41,160.00 (To record the sales under net method) 3-a-2 26-Nov Cash    41,160.00    Accounts Receivable    41,160.00 (To record the cash received) 3-b-1 17-Nov Accounts Receivable    41,160.00    Sales    41,160.00 (To record the sales under net method) 3-b-2 15-Dec Cash    42,000.00    Accounts Receivable    41,160.00 $42,000 X 98%    Sales Discount Forfeited          840.00 (To record the cash received)

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