Accounting for Sales on Credit: Net Method On December 29 of the current year, Sabre Company sold merchandise for $10,000 on credit terms, 3/10, n/60. Its accounting period ends December 31. Required Provide the following entries under the net method. a. To record the merchandise sale. Omit the cost of goods sold entry. b. To record collection of the account, assuming collection took place on January 5 of next year. c. To record collection of the account, assuming collection took place on February 15 of next year. Note: If a line in a journal entry isn't required for a transaction, select "N/A" as the account name and leave the Dr. or Cr. answer blank (zero). Account Name a. Accounts Receivable Sales Revenue To record the merchandise sale. b. Cash Sales Discount Accounts Receivable To record the collection of account. Dr. Cr. 10,000 0 0 10,000 9,700 0 300 0 0 10,000 C. Cash 9,700 0 Sales Discount Accounts Receivable 300 0 0 10,000 To record the collection of account. d. Indicate what should be reported for net accounts receivable on the balance sheet (ignoring cash) and for net sales revenue on the income statement for both the current year and next year assuming 1. Parts a and b occur. 2. Parts a and c occur. Note: Indicate a contra account balance with a negative sign. d. (1) Balance Sheet, Dec 31 Accounts Receivable Income Statement Sales Revenue, net d. (2) Balance Sheet, Dec 31 Accounts Receivable Income Statement Sales Revenue, net Other Revenue Check Year 1 Year 2 $ 10,000 $ 0 Year 1 Year 2 10,000 x 0 Year 1 Year 2 $ 10,000 $ 0 Year 1 Year 2 10,000 0 10,000 0