Question

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, 1/30 Required: 1. Prepare the journal entries to record the sale on November 17 ignore cost of goods) and collection on November 26, 2016, assuming that the gross method of accounting for cash discounts is used. Of 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 with a price of $600, 30 trade discount of applicable), with terms of 2/10, 30 under the gross method. < Prev 2 of 8 Next > ta XOO . OPW PXOU O EN MacBook Pro 7 w / 1 s/D/FGHIJRI N M

Answer 1

Page-1 Answer: According to the given Tracy company a manufacturer of air conditioners sold 100 units to Thomas company on November 17, 2016. The following answer is the journal entries to recood the sale - on November 17 Date Accounting head and Expalanation Debit credit |17-11-16 Accounts receivable $42,000 sales Revenue $42.000 Being sales recooded after trade discount with terms of al10 n/30 under gross method) 26-11-16 $41,160 $840 cash $42,000x98967) sales discount $42000x2160 Accounts receivable To record the collection of accounts receivable) $42,000 you are please give a satisfied positive with thumps up if this answer. 1