Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Comp

Question

Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2018. The units have a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a periodic inventory system.

Required:

1. & 2. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2018 and December 15, 2018 using the gross method of accounting for purchase discounts.

3. Repeat requirements 1 and 2 using the net method of accounting for purchase discounts.

*** I got almost everything correct, however, I can't seem to get the correct Account Payable total for both the gross and net method when asked to record the payment on Nov. 17 purchase using both the gross and net method. (attached above are my solutions).

Req 1 and 2 Req 3 Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2018 and December 15, 2018 using the gross method of accounting for purchase discounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit Purchases 81,600 2018 Accounts payable 81.600 November 26,Accounts payable 81,600 2018 Purchase discounts 2.448 Cash 79,152 December 15,Accounts payable ! 79, 1520 2018 Cash 79,152 Req 1 and 2 Req 3 >

Explanation / Answer

Gross method 15-Dec-18 Accounts payable 81600                Cash 81600 Net method 15-Dec-18 Accounts payable 79152 Interest expense 2448                Cash 81600

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