Cash/Sales Discounts Example: 1. Ballou Inc. made credit sales of $25,000 with terms 1/10, n/30. Within the discount period it received payment from customers owing $15,000; after the discount period it received payment from customers owing $10,000. If Ballou uses the net method of recording sales, prepare journal entries for the transactions above Date Account Description Debit Credit 2. Use the information presented above for Ballou Inc. If Ballou uses the gross method of recording sales, prepare journal entries for the transactions describe Date Account Description Debit Credit