Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method compared[LO8-3][The following information applies to the questions displayed below.]Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2021. The unitshave a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30.Thomas uses a perpetual inventory system.Exercise 8-11 (Algo) Part 33. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December15, 2021 using the net method of accounting for purchase discounts.X Answer is not complete.Complete this question by entering your answers in the tabs below.Reg 3AReg 3BPrepare the journal entry for the payment, assuming instead that it was made on December 15, 2021. (If no entry is requiredfor a transaction/event, select "No journal entry required" in the first account field.)DebitCreditNoDateGeneral Journal79 152 O1December 15. 2021 Accounts pavable.< Prevof 11Next >... Exercise 8-11 (Algo) Part 33. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December15, 2021 using the net method of accounting for purchase discounts.Answer is not complete.Complete this question by entering your answers in the tabs below.Req 3AReq 3BPrepare the journal entry for the payment, assuming instead that it was made on December 15, 2021. (If no entry is requiredfor a transaction/event, select "No journal entry required" in the first account field.)NoDateGeneral JournalDebitCredit1December 15, 202 Accounts payable79,152Inventory2,44881,600 V

When an event occurs in the business and it can be measured and expressed in terms of money, it…

Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system. Exercise 8-11 (Algo) Part 3 3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.

Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system. Exercise 8-11 (Algo) Part 3 3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

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