On December 1, 2019, Lynch, Inc. sold merchandise on account with a list price of...
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Accounting
On December 1, 2019, Lynch, Inc. sold merchandise on account with a list price of $20,000 and trades discounts of 30% and 5%. Terms are 2/10, n/30. On December 11, 2019, 40% of the receivables were collected. On December 31, 2019, the remaining 60% of the receivables were collected. The company does not record trade discounts in a separate account in its general ledger. The gross method is used to record cash discounts.
a December 1 transaction
b December 11 transaction.
c December 31 transaction
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