Sales Discounts}

CORNERSTONE 5.1 Rama Inc. provided consulting services with a gross price of \(\$ 40,000\) and terms of \(2 / 10, n / 30\).

\section*{Required:}

1. Prepare the necessary journal entry to record the net sales to be reported in the financial statements.

2. Prepare the necessary journal entry to record collection of the receivable assuming the customer pays within 10 days.

3. Prepare the necessary journal entry to record collection of the receivable assuming the customer pays after 10 days.

OBJECTIVE 4 Cornerstone Exercise