Tracy Company, a manufacturer of air conditioners, sold 270 units to Thomas Company on November...
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Tracy Company, a manufacturer of air conditioners, sold 270 units to Thomas Company on November 17, 2018. The units have a list price of $400 each, but Thomas was given a 25% 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. Complete this question by entering your answers in the tabs below. 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 fora transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 3 Record the purchase of air conditioners
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