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Required Information

Exercise $7-5($Algo$)$ Trade and cash discounts; the gross method and the net method compared $[$LO$7-3]$

$[$The following information applies to the questions displayed below.$]$

Tracy Company, a manufacturer of air conditioners, sold $120$ units to Thomas Company on November $17,2024.$ The units have a list price of $$750$ each. but Thomas was given a $20\%$ trade discount. The terms of the sale were $\frac{2}{10}.\frac{n}{30}.$

Exercise $7-5($Algo$)$ Part $3$

$3-$a$.$ Prepare the journal entries to record the sale on November $17($Ignore cost of goods$)$ and collection on November $26,2024.$ 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 $15,2024.$ assuming that the net method of accounting for cash discounts is used.

Answer is complete but not entirely correct.

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Req $3A$

Req$38$

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on November $26,2024,$ assuming that the net method of accounting for cash discounts is used.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$\backslash$table$[[$No$,$Date,General Journal,,Debit,Credit$],[1,$November $17,202,$Accounts receivable,$,72,000,],[,$Sales revenue,$0,,72,000$