Problems (78 points): 1. Amo Co. sold goods with a list price of $60,000 on...
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Problems (78 points): 1. Amo Co. sold goods with a list price of $60,000 on Dec. 14. Because the customer is new to the company, Amo decides to give the customer 10% trade discount. The terms for sales (cash) discount are 2/10,n/30. By Dec. 23, Amo had collected cash on $18,000 (gross price) of these receivables. On Dec. 31 , Amo collected cash on $5,000 (gross price) of the receivables. By Dec. 31 , Amo had sales returns of $1,500 (gross price) for the sale. The company chooses to record the sales returns as they occur. Required: (12 points) Prepare journal entries for the above transactions or events, assuming the gross price method is used
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