Gordon's Grocers purchases bread from Buddys Bread Company at $1.80 per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase 464,000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 1/15, n/30. Buddy expects Gordon to pay within the discount period.

Required:

Prepare the journal entry to record the sale using the net method, rounding to the nearest whole dollar.

Hint: In calculating your answer, use one minus the discount rate (eg. 1 - 0.01 = 0.99)

	Accounts Receivable
	Sales Revenue
	Record sale

Then, prepare the journal entry assuming the payment is made within 15 days (the discount period). If required, round your answers to nearest whole dollar.

	Cash
	Accounts Receivable
	Record collection within discount period