Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. S. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, 1/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the discount 20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The cost of the merchandise sold was $3,300. 25. Received payment on account for the sale of August 9. 31. Received payment on account for the sale of August 20. a. Journalize the August transactions using the gross method of recording sales discounts. If an amount box does not require an entry, leave it blank. Aug. 5 Accounts Receivable M. Quinn 7.500 Sales 7.500 Aug. 5 4,200 Cost of Merchandise Sold Merchandise Inventory 4,200 Aug. 9 Accounts Receivable R. Busch Sales 4,000 4,000 Aug. 9 Cost of Merchandise Sold 2,100 Merchandise Inventory 2,100 Aug. 15 Cash 7,350 Sales 150 Accounts Receivable-M. Quinn 7,500 6,000 Aug. 20 Accounts Receivable-S. Mooney Sales 6,000 Aug. 20 Cost of Merchandise Sold 3,300 Merchandise Inventory 3,300 Aug. 25 Cash 4,000 Accounts Receivable R. Busch 4,000 Aug. 31 Cash 6,000 Accounts Receivable S. Mooney 6,000 b. Journalize the August transactions using the net method of recording sales discounts. If an amount box does not require an entry, leave it blank. Aug. 5 Accounts Receivable 7,350 Sales 7,350 Aug. 5 4.200 Cost of Merchandise Sold Merchandise Inventory 4,200 Aug. 9 3,960 Accounts Receivable Sales 3,960 Aug. 9 2,100 Cost of Merchandise Sold Merchandise Inventory 2,100 Aug. 15 Cash 7,350 Accounts Receivable 7.350 Aug. 20 Accounts Receivable 6,000 Sales y 6,000 4 Aug. 20 Cost of Merchandise Sold 3,300 Merchandise Inventory 3,300 Aug. 25 Cash 4,000 Accounts Receivable 3,960 Sales 40 Aug. 31 Cash 6,000 Accounts Receivable 6,000 c. What is the total sales for August under each method? Total Sales Gross method $ Net method $ d. Which method of recording sales discounts requires an end-of-period adjusting entry? Gross method