Question

Tracy Company, a manufacturer of air conditioners, sold 220 units to Thomas Company on November 17, 2021. The units have a list price of $400 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30.

1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used.

2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.

Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross 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.)

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.

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.)

Answer 1

olulion SouYmal Entvies bebit cvedibl Account TTLles and .planalion Event Date $661000 1 ACCount receivable I000 2021 Zevenue Sales Ltoecovd sale on sov 11th) Nov -2, Cash 1320 Sales oiscauntgoo2 021 ACCOunts recelvable 66,000 to decovs cash collecbion on NOV 26 ACCount Recei vable NOV-11 660o 2021 Revenne Sales (to secovd sale on nov I1)

Dec -15 Cash 1661600 AGCOunt Receivable ko ecovs cash colleckron on December isth) 3-a NOv-I : $64,680 ACCOunt Recelvable 202i $641620 Sales revenue T to ecovd sale on Nov Cash NOV -26 6h1620 2021 A CCOUNŁ Recei vable to YecoNd tasi colechion On Novembex 264 3-b NOV- ACCOunt Receivable G41680 2021 Sales Revenue Lto ors sale on ov ith)

Dec-15 Cash 2O21 AccOunts Receivable 3 641690 Inteyesb Revenue 1320 Eo Yeco cash. colleckion on December 15th) Explanation ' ACcOunts Receivable -(220 units $u00)- 25% Tyade Discaunt Lavoss methods ( 000 25/ $2,000 - 22,000 2 ACCOunis Recei vable 220 units y suo0)- 251. Tvade biscount- 21. Discount net metha - 000-33,0ODY.2511S - 2 1. $661000-s661206 K2:7
Hi. If you have any doubts relating to the above solution feel free to rise your doubts through comments. Thank You.