Chapter $9.(6$ Problem sets$)$

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Clark and Lewis Wholesalers, inc. sells hiking boots for $$100$ per pair. On June $1,$ the company sold $50$ pairs on account to a customer with terms of $\frac{2}{10},\frac{n}{30}.$ The customer paid for $20$ pairs of boots on June and paid for the remaining $30$ pairs on June $29.$ Provide the necessary journal entries for Clark and Lewis to record these transactions using the most$-$likely$-$amount method assuming.that the customer will not take the discount. Also, prepare the journal entries if the customer will take th discount. $($Ignore the journal entry that wor typically be necessary to record the cost of goods sold and the reduction of inventory.$)$ Also, provide a comparison of the impact on the income statement for each assumption.

Provide the necessary journal entries for Clark and Lewis to record these transactions using the most likely amount method. if the customer will no take the discount $($gross method$).($Record debits first, then credits. Exclude explanations from any journal entries.

June $1$: The company sold $50$ pairs of hiking boots to a customer on account with terms of $\frac{2}{10},\frac{n}{30}$

June $9$: The customer paid for $20$ pair of hiking boots.

$\backslash$table$[[$Account$,$June $9,],[,,]]$

$$

June $29$: The customer paid for the remaining $30$ pair of hiking boots.

$\backslash$table$[[$Acoount$,$June $29,],[,,],[,,]]$

Provide the necessary journal entries for Clark and Lewis to record these transactions using the most$-$likely$-$amount method, assuming...that the customer will take the discount $($net method$).($Record debits first, then credits Exclude explanations from any journal entries.$)$

June $1$: The company sold $50$ pair of hiking boots to a customer on account with terms of $\frac{2}{10},\frac{n}{30}.$

$\backslash$table$[[$Account$,$June $1],[,,],[,,]]$

June $9$: The customer paid for $20$ pair of hiking boots.

June $29$: The customer paid for the remaining $30$ pair of hiking boots

$\backslash$table$[[$Account$,$June $29,],[,,]]$

Finally, provide a comparison of the impact on the income statement for each method. Review the

Review the entries prepared under the gross method and under the net method

$\backslash$table$[[$Income Statement Comparison$],[$Gross Method,Net Method,$],[\backslash$table$[[$Sales$],[$Less: Sales discounts$]],\backslash$table$[[$$isales$],[$Sales discounts$],[$SAdd: forfeited$]],],[$Total revenue,$Total revenue,s$]]$