SALES DISCOUNT RECORDED AT GROSS Nevada Company sold merchandise with a list price of $12,500 to Small Enterprises with terms 3/15, n/30. Nevada records sales at gross.

Required:

. Prepare the entries to record this sale in Nevada’s journal.

. Prepare the entry for Nevada’s journal to record receipt of cash in payment for the sale within the discount period.

. Prepare the entry for Nevada’s journal to record receipt of cash in payment for the sale after the discount period.

Exercise