Question

Required information Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2018. The units have a list price of $640 each, but Thomas was given a 25% trade discount. The terms of the sale were 3/10, 1/30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, 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, 2018, assuming that the net method of accounting for cash discounts is used. Complete this question by entering your answers in the tabs below. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, 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.) View transaction list Journal entry worksheet Record the sale of 100 units with a list price of $640, a 25% trade discount (if applicable), with terms of 3/10, 1/30 under the net method. Note: Enter debits before credits General Journal Date November 17, 2018 Debit Credit

Answer 1

Solution: Part 3a Date General Journal Nov 17,2018 Account receivable Sales revenue 100*640*(1-0.25)*(1-0.03) Debit Credit 46560 46560 46560 Nov 26, 2018 Cash Account receivable 46560 Credit Part 3b Date General Journal Nov 17,2018 Account receivable Sales revenue 100*640*1-0.25)*(1-0.03) Debit 46560 46560 48000 Dec 15, 2018 Cash Interest revenue Account receivable 1440 46560