Effects of Sales Discounts

Citron Mechanical Systems makes all sales on credit, with terms $\frac{1}{15},\frac{n}{30}.$ During the year, the list price $($prediscount$)$ of services provided was $$687,300.$ Customers paid $$482,200($list price$)$ of these sales within the discount period and the remaining $$205,100($list price$)$ after the discount period. Citron uses the net method of recording sales.

Required:

Compute the amount of sales that Citron recorded for the year. $ x

Compute the amount of cash that Citron collected from these sales.

$

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The gross method records the receivable at the "gross" $($or undiscounted$)$ price. The discount is then recognized if payment is made within the discount period. If payment is not received until after the discount period, the full amount is paid.

The gross method records the receivable at the "gross" $($or undiscounted$)$ price. The discount is then recognized if payment is made within the discount period. If payment is not received until after the discount period, the full amount is paid.

Assuming the net method was used for all sales, prepare a summary journal entry to record these sales and a second summary entry to record the cash collected. If an amount box does not require an entry, leave it blank.

Accounts Receivable $$

Sales Revenue $$