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I can't seem to find where I am going wrong. Please help and show formulas. AquaZone Company, a manufacturer of water heaters, sold 2,000 units
I can't seem to find where I am going wrong. Please help and show formulas.
AquaZone Company, a manufacturer of water heaters, sold 2,000 units on October 2,2022 . The units have a list price of $425 each, but the customer was given a 30% trade discount. The terms of the sale were 2/10,n/30. \begin{tabular}{|l|r|r|} \hline Units sold & & 2,000 \\ \hline Selling price per unit & 5425 & 2 \\ \hline Terms & 30% & /10,n/30 \\ \hline Trade discount & & 23% \\ \hline \end{tabular} 1. Assume Aquazone uses the gross method of accounting for cash discounts. a. Prepare the journal entry to record the sale on October 2 assuming that the gross method of accounting for cash discounts is used (ignore cost of goods). b. Assume the customer pays the amount due on October 10, 2022. Prepare the journal entry to record the collection. c. Assume the customer pays the amount due on November 6, 2022. Prepare the journal entry to record the collection. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Date } & General Journal & Debit & \multicolumn{1}{c|}{ Credit } \\ \hline November 6,2022 & Cash & Accounts receivable & 595,000 & \\ & & & & \\ \hline \end{tabular}Step by Step Solution
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