Question

Required information The following information applies to the questions displayed below 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. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26. 2021, 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 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net 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.) View transaction list Journal entry worksheet 2 Record the sale of 150 units with a list price of $560, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the net method. Note: Enter debits before credits. Date General Journal Debit Crodit November 17, 2021

Answer 1

Sales after trade discount = (150*$560)-($84,000*25%) Sales after trade discount = $84,000-$21,000 Sales after trade discount = $63,000 Sales after cash discount = $63,000-($63,000*2%) Sales after cash discount = $63,000-$1,260 Sales after cash discount = $61,740 3-a) Date Account Titles and Explanation Nov-17 Accounts receivable-Thomas company Sales revenue (To record the sales on account) Credit Debit $ 61,740 $ 61,740 Nov-26 Cash $ 61,740 Accounts receivable-Thomas company (To record the collcetion of accounts receivable) $ 61,740 Credit 3-b) Date Account Titles and Explanation Nov-17 Accounts receivable-Thomas company Sales revenue (To record the sales on account) Debit $ 61,740 $ 61,740 Dec-15 Cash $ 63,000 Accounts receivable-Thomas company Sales discount forfeited (To record the collcetion of accounts receivable) $ 61,740 $ 1,260