Sales Discounts}

Harry Gardner provides tax services for small businesses. This year's tax season has proved especially lucrative for Harry; he earned \(\$ 45,000\) for providing his services. Harry uses terms of \(1 / 10, \mathrm{n} / 30\) in billing his customers.

\section*{Required:}

1. Prepare the necessary journal entry to record the net sales to be reported on 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.

\section*{OBJECTIVE 4 Brief Exercise