Question

Check my work 3 Part 2 of 2 Required information Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared (LO7-3) The following information applies to the questions displayed below.) points Skipped Tracy Company, a manufacturer of air conditioners, sold 150 units to Thomas Company on November 17, 2021. The units have a list price of $760 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30. eBook Exercise 7-5 (Algo) Part - 2 Hint 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. Print Complete this question by entering your answers in the tabs below. References Reg ЗА Reg 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 202 that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No jo required" in the first account field.) View transaction list Journal entry worksheet < Prev of 10 Next >

Answer 1

In the books of Tracy Company:

Transaction	Date	Account Titles	Debit	Credit
			$	$
3.a.	Nov 17, 2021	Accounts Receivable	83,790
		Sales Revenue		83,790
	Nov 26, 2021	Cash	83,790
		Accounts Receivable		83,790
3.b.	Nov 17, 2021	Accounts Receivable	83,790
		Sales Revenue		83,790
	Dec 15, 2021	Cash	85,500
		Accounts Receivable		83,790
		Interest Revenue		1,710