vaheel gold-soul lia women\'s swi. shophearts Job Description Cloud Bing Yahoo G
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vaheel gold-soul lia women's swi. shophearts Job Description Cloud Bing Yahoo Google Wikipedia Facebook Twitter Linkedin HW#10 Saved Help Save & Exit Sub Check my wor Required information Exercise 7-5 Trade and cash discounts; the gross method and the net method compared [LO7-3 Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2018. The units have a list price of $750 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30 Exercise 7-5 Part-1 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, assuming that the gross method of accounting for cash discounts is used 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15 2018, assuming that the gross method of accounting for cash discounts is used Comnlete this nuaction hu enterinn vnur anewere in the tahs helew Prev 3 4 of 7 Next > 8 0Explanation / Answer
Answer
Date
General Journal
Debit
Credit
Working
Nov-17
Accounts receivables
$60000
[Gross sale amount = 100 units x $750 x 80%]
Sales Revenue
$60000
Nov-26
Cash
$58200
[payment made within 10 days, hence discount of 3%]
Sales Discount
$1800
[60000 x 3%]
Accounts receivables
$60000
[total receivables]
Date
General Journal
Debit
Credit
Working
Nov-17
Accounts receivables
$60000
[Gross sale amount = 100 units x $750 x 80%]
Sales Revenue
$60000
Dec 15
Cash
$60000
[payment NOT made within 10 days, hence NO discount of 3%]
Accounts receivables
$60000
Date
General Journal
Debit
Credit
Working
Nov-17
Accounts receivables
$60000
[Gross sale amount = 100 units x $750 x 80%]
Sales Revenue
$60000
Nov-26
Cash
$58200
[payment made within 10 days, hence discount of 3%]
Sales Discount
$1800
[60000 x 3%]
Accounts receivables
$60000
[total receivables]
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