Effects of Sales Discounts}

Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During 2018, the list price (prediscount) of services provided was \(\$ 687,500\). Customers paid \(\$ 482,000\) (list price) of these sales within the discount period and the remaining \(\$ 205,500\) (list price) after the discount period. Citron reports net sales to be reported in the financial statements.

\section*{Required:}
1. Compute the amount of sales that Citron recorded for 2018 .
2. Compute the amount of cash that Citron collected from these sales.
3. Prepare a summary journal entry to record these sales and a second summary entry to record the cash collected.
\section*{OBJECTIVE 24 Exercise