Instructions On December 1, 2019, Lynch Incorporated sold $22,000 of merchandise with terms 2/10, NEOM On December 11, 2019, collections were made on sales originally billed for $11,000, and on December 31, 2019, additional collections on sales originally billed for $10,000 were received Required: 1. Propare the journal entries to record the sale, collections, and any required year and adjustments assuming thal Lyric records accounts receivable and sales at (a) the gross price and (b) the net price 2 Next Level Assume that Lynch's customer does not have the available cash to pay Lynch within the discount period. How much interest should the customer be willing to pay for a loan to permit them to take advantage of the discount period (assume no additional costs to the loan)? 3. Next Level Explain why Lynch's granting of cash (sales) discounts may improve cash dow CHART OF ACCOUNTS Lynch Incorporated General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 511 Insurance Expense 181 Equipment 198 Accumulated Depreciation LIABILITIES 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Check My Work ruired year-end adjustments assuming that Lynch records accounts General Journal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 GENERAL JOURNAL Score: 63/88 DATE ACCOUNT TINE POST REF DEBIT CHENT Dec. 1 Accounts Receivable 22,000.00 Accounts Payable 27.000.00 Dec 11 Cash 11.000.00 Accounts Receivable 11,000.00 5 Dec 31 Cash 10,000.00 10.000.00 Accounts Receivable Feedback Check My Work When the selling company uses the gross pnce method it records the total invoice price at the time of sale as if no cash discount were in Question not attempted. NET GENERAL JOURNAL Score: 0/110 DATE ACCOUNT TITLE POST REF DCT CREDIT 1 2 3 5 6 7 Adjusting Entries 3 9 10 Feedback Next Level un acte de hecho Lynch wie dacorpo Tontonome do pedonal costs to the The would have to pay lynch cartoonerid weine tate that would be advantageous and customer Instructions On December 1, 2019, Lynch Incorporated sold $22,000 of merchandise with terms 2/10, NEOM On December 11, 2019, collections were made on sales originally billed for $11,000, and on December 31, 2019, additional collections on sales originally billed for $10,000 were received Required: 1. Propare the journal entries to record the sale, collections, and any required year and adjustments assuming thal Lyric records accounts receivable and sales at (a) the gross price and (b) the net price 2 Next Level Assume that Lynch's customer does not have the available cash to pay Lynch within the discount period. How much interest should the customer be willing to pay for a loan to permit them to take advantage of the discount period (assume no additional costs to the loan)? 3. Next Level Explain why Lynch's granting of cash (sales) discounts may improve cash dow CHART OF ACCOUNTS Lynch Incorporated General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 511 Insurance Expense 181 Equipment 198 Accumulated Depreciation LIABILITIES 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Check My Work ruired year-end adjustments assuming that Lynch records accounts General Journal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 GENERAL JOURNAL Score: 63/88 DATE ACCOUNT TINE POST REF DEBIT CHENT Dec. 1 Accounts Receivable 22,000.00 Accounts Payable 27.000.00 Dec 11 Cash 11.000.00 Accounts Receivable 11,000.00 5 Dec 31 Cash 10,000.00 10.000.00 Accounts Receivable Feedback Check My Work When the selling company uses the gross pnce method it records the total invoice price at the time of sale as if no cash discount were in Question not attempted. NET GENERAL JOURNAL Score: 0/110 DATE ACCOUNT TITLE POST REF DCT CREDIT 1 2 3 5 6 7 Adjusting Entries 3 9 10 Feedback Next Level un acte de hecho Lynch wie dacorpo Tontonome do pedonal costs to the The would have to pay lynch cartoonerid weine tate that would be advantageous and customer