Question

Required information The following information applies to the questions displayed below) Pont 2 of 2 Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $520 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n.30. points Skloped 1 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. 19 19 1 Reg 3A Reg38 Prepare the journal entries to record the sale on November 17 (gnore cost of goods and collection on November 25, 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.) lo Journal entry worksheet Record the sale of 200 units with a price of $520, 25. trade discount applicabile), with terms of 2/10, 30 under the net method General Journal Credit November 17, 2021

Answer 1

Credit Debit 76,440 Answer to Requirement A: Date General Journal Nov. 17, 2021 Accounts Receivable ($78,000 - $1,560) Sales Revenue Nov. 26, 2021 Accounts Receivable $ 76,440 Cash $ 76,440 $ 76,440 Gross Purchase = 200 * $520 Gross Purchase = $104,000 Trade Discount = $104,000 * 0.25 Trade Discount = $26,000 Cash Discount = ($104,000 - $26,000) * 0.02 Cash Discount = $1,560 Credit Debit 76,440 $ Answer to Requirement B: Date General Journal Nov. 17, 2021 Accounts Receivable Sales Revenue Dec. 15, 2021 Cash Interest Revenue Accounts Receivable $ 76,440 78,000 1,560 76,440