5.2

Sales Discounts Taken Gordon's Grocers purchases bread from Buddy's Bread Company at $1.80 per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase 114,000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 3/15,n/45. Buddy expects Gordon to pay within the discount period. Required: If an amount box does not require an entry, leave it blank: Prepare the journal entry to record the sale using the net method. Hint: In calculating your answer, use one minus the discount rate (eg. 10.02=.98) Record sale Then, prepare the journal entry assuming the payment is made within 10 days (within the discount period). Record collection within discount perioo