Question

please only complete question 11 i have question 10 done

Return to question 10 Part 1 of 2 Required information Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared (L07-3) [The following information applies to the questions displayed below.) points Tracy Company, a manufacturer of air conditioners, sold 150 units to Thomas Company on November 17, 2021. The units have a list price of $560 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30. Exercise 7-5 (Algo) Part - 1 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. Answer is complete and correct. Complete this question by entering your answers in the tabs below. Reg 2 Prepare the tournal entries to record the sale on November 17 Clonore cost of goods) and collection on November 26, 2021.

Answer 1

11 In net method of accounting, the sale entry is made with the assumption that the discount will be given to the customer on the assumption the payment will be received with the discount period. Net sales entry is made. If the payment is not received with in the discount period then entry for sales discount forfeited will be passed Date Account Title Debit Credit Ans 3-(a) Nov 17 Account Receivable [Note (0)] $61,740 Sales $61,740 (To record sales) Nov 26 Cash $61,740 Accounts Receivable $61,740 (To record collection from customer) Ans 3-(b) Nov 17 $61,740 $61,740 Dec 15 Account Receivable [Note (0)] Sales (To record sales) Cash Sales Discount Forfeited Account Receivable (To record collection from customer) $63,000 $1,260 $61,740 Note (i) $560 $140 $420 Sale Price per unit Less: Trade discount @ 25% Sales per unit No of units sold Total Sales Value Less: Cash Discount @2% 150 $63,000 $1,260 $61,740