Transcribed Image Text
In: Accounting3 of 3Required:In an effort to increase sales during the upcoming year, Lynbrookimplemented...3 of 3Required:In an effort to increase sales during the upcoming year, Lynbrookimplemented a new credit policy of offering terms of 3/15, n/30.Your CFO is trying to decide between the NET method of recordingreceivables and the GROSS method, so she asked you to prepareentries using both methods.Information:On January 15, 2019, Lynbrook billed Scan House, Inc. $25,000 forconsulting services provided during the first week ofJanuary.Required:Net Method entries1. Prepare the journal entry to record the sale using the netmethod.2. Prepare the journal entry assuming the payment is received onJanuary 25, 2019.3. Prepare the journal entry assuming the payment is not receiveduntil February 14, 2019.Gross Method entries4. Prepare the journal entry to record the sale using the grossmethod.5. Prepare the journal entry assuming the payment is received onJanuary 25, 2019.6. Prepare the journal entry assuming the payment is not receiveduntil February 14, 2019.