Question

Sved Exercise 7-5 Trade and cash discounts; the gross method and the net method compared [LO7-3 Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2018. The units have a list price of $450 each, but Thomas was given a 30% trade discount lhe terms of the sale were 3/10 n/30 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2018, 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, 2018, assuming that the gross method of accounting for cash discounts is used 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 ognore 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 Req 1 Req 2 Reg 3A Rea 3B Prepare the journal entries to record the sale on November 1? (ignore cost of goods) and collection on November 26, 2018, assuming that the gross method of accounting for cash discounts is used. (Qf no entry is required for a transaction/event select "No journal entry required in the first account field) View transaction list Journal entry worksheet

Answer 1