Question

Required information The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $520 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10. n/30 Required: 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. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ences View transaction list Journal entry worksheet Record the sale of 200 units with a list price of $520, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the gross method. Note: Enter debits before credits. Debit Credit General Journal of 11 Next > Date November 17, 20217 < Prev 23

Answer 1

Credit | $ Debit 78,000 Answer to Requirement 1: Date General Journal Nov. 17, 2021 Accounts Receivable [200 * $520 * (1 - 0.25)] Sales Revenue Nov. 26, 2021 Cash Sales Discounts [$78,000 * 2%] Accounts Receivable $ 78,000 76,440 1,560 $ 78,000 Credit $ Debit 78,000 Answer to Requirement 2: Date General Journal Nov. 17, 2021 Accounts Receivable (200 * $520 * (1 - 0.25)] Sales Revenue Dec. 15, 2021 Cash Accounts Receivable $ 78,000 78,000 $ 78,000