Gordon's Grocers purchases bread from Buddy's Bread Company at $1.45 per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase 20,000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 2/10, n/30. Buddy expects Gordon to pay within the discount period.
Required:
Prepare the journal entry to record the sale using the gross method. Then, prepare the journal entry assuming the payment is made within 10 days (within the discount period)?