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. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, r/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., 54,000, terms 1/10, 1/30. 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, $5,000, terms /com. 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 Sales X MX Aug. 5 Cost of Merchandise Sold Merchandise Inventory Aug. 9 Accounts Receivable - R. Busch Sales v II II II II I II II II Aug. 9 Cost of Merchandise Sold Merchandise Inventory Aug. 9 Accounts Receivable-R. Busch Sales Aug. 9 Cost of Merchandise Sold Merchandise Inventory 10 II II 10 Aug. 15 Cash Sales Accounts Receivable-M. Quinn Aug. 20 Accounts Receivable-S. Mooney Sales T Aug. 20 Cost of Merchandise Sold Merchandise Inventory Aug, 25 Cash Accounts Receivable-R. Busch Aug. 31 Cash Accounts Receivable-s. Mooney . Feedback Check My Work a. Consider accounts and amounts to be debited and credited using the gross method of reco b. Journalize the August transactions using the net method of recording sales discounts. If an amount box does not require an ent Aug. 5 Accounts Receivable Sales Aug. 5 Cost of Merchandise Sold Merchandise Inventory Aug. 9 Accounts Receivable Sales Aug. 9 Cost of Merchandise Sold Merchandise Inventory Aug. 15 Cash Accounts Receivable Aug. 20 Accounts Receivable Sales Aug 20 Cost of Merchandise Sold Merchandise Inventory III Aug. 25 Cash Accounts Receivable Sales Aug. 20 Cost of Merchandise Sold Merchandise Inventory Aug. 25 Cash Accounts Receivable 011 Sales Aug. 31 Cash Accounts Receivable Feedback Check My Work b. Consider the accounts and amounts to be debited and credited using the net me Increase sales. 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