Melon Company made sales of $40,000 with terms 1/10, n/30. Within the discount period, it received a

Question:

Melon Company made sales of $40,000 with terms 1/10, n/30. Within the discount period, it received a cash payment on $35,000 of the sales from customers. After the discount period, it received $5,000 in payments from customers. Assuming Melon uses the gross method of recording sales, prepare journal entries for the above transactions.