Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. 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, 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.Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.Record the cash collection on November 26.Record the cash transaction on November 26.2. 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.Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.Record the cash collection on December 15.

Trade discounts Trade discounts are discounts given on the invoice value. Trade discounts are given…

Answered: . Prepare the journal entries to record…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 2P

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Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. 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, 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.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.Record the cash collection on November 26.
Record the cash transaction on November 26.

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.

Record the sale of 100 units with a list price of $600, a 30% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.
Record the cash collection on December 15.

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