1. On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received on April 8 and the remaining payment on $16,000 sales was received on April 27.

(1a). Assuming Kelvin uses the net method of accounting for sales discounts.Please make journal entries on April 2, April 8 and April 27.

(1b). Assuming Kelvin uses the gross method of accounting for sales discounts.Please make journal entries on April 2, April 8 and April 27.