Required information Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net...
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Required information Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared [L07-3] [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 120 units to Thomas Company on November 17, 2021. The units have a list price of $750 each, but Thomas was given a 20% trade discount. The terms of the sale were 2/10, n/30. Exercise 7-5 (Algo) Part - 2 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used. Complete this question by entering your answers in the tabs below. Req Req 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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