Ramsden Inc. provided consulting services with a gross price of $40,000 and terms of 2/10, n/30.
Required:
1. Prepare the necessary journal entries to record the sale under the gross method.
2. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays within 10 days.
3. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays after 10 days.