Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Exercise 7.5 (Static) Trade and cash discounts; the gross method and the net method compared (L07-3) [The following information applies to the questions displayed

image text in transcribed
image text in transcribed
image text in transcribed
1 Exercise 7.5 (Static) Trade and cash discounts; the gross method and the net method compared (L07-3) [The following information applies to the questions displayed below) Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, 1/30 Part 1 of 2 Exercise 7-5 (Static) Part-1 0.94/12 points awarded Scored Required: 1. Prepare the journal entries to record the sale on November 17 (gnore cost of goods and collection on November 26, 2021 assuming that the gross method of accounting for cash discounts is used 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used. eBook Complete this question by entering your answers in the tabs below. Print References Reg1 Reg2 Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Debit Credit 1 November 17,202 Accounts receivable 42,000 Sales revenue 42,000 2 November 26, 202 Cash Accounts receivable 41.100 O 42,000 EX 2 Required information Exercise 7-5 (Static) Trade and cash discounts; the gross method and the net method compared (L07-3) (The following information applies to the questions displayed below) Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, 1/30. Part 2 of 2 Exercise 7-5 (Static) Part - 2 0/12 points awarded Scored 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used. eBook Complete this question by entering your answers in the tabs below. Print Reg 3A Reg 30 References Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Na 1 General Journal Date November 17, 202 Debit Credit 2 November 26, 202 3 3 Reg 28 > 2 Exercise 7-5 (Static) Trade and cash discounts; the gross method and the net method compared (L07-3) [The following information applies to the questions displayed below.) Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, 1/30. Part 2 of 2 Exercise 7-5 (Static) Part - 2 0/12 points awarded Scored 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used. eBook Complete this question by entering your answers in the tabs below. Print Reg 3A Reg 38 o References Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Date General Journal No 1 Debit Credit November 17, 202 3 2 December 15, 202 3 @ Reg NA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

11th Edition

0072834943, 9780072834949

More Books

Students also viewed these Accounting questions