On April 2, Kelvin sold $40,000 of inventory it'ems on credit with the terms 1/10, net 30. Payment on $24,000 sales was received on April 8 and the remaining payment on $16,000 sales was received on April 27.

(1). Assuming Kelvin uses the net method of accounting for sales discounts.

Please make journal entries on April 2, April 8 and April 27.

(2). Assuming Kelvin uses the gross method of accounting for sales discounts.

Please make journal entries on April 2, April 8 and April 27.

2. Exercise 7.1 on page 7-42

E7.1 (LO 1) Excel following information is provided. (Determining Cash Balance) The controller for Clint Eastwood Co. is at tempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The 1. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First National Bank of Yojimbo. 2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood to write checks on this balance, $5,000,000. 3. Travel advances of $180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction) 4. A separate cash fund in the amount of $1,500,000 is restricted for the retirement of long-term debt. 5. Petty cash fund of $1,000. 6. An L.O.U. from Marianne Koch, a company customer, in the amount of $190,000. 7. A bank overdraft of $110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank. 8. The company has two certificates of deposit, each totaling $500,000. These CDs have a maturity of 120 days. 9. Eastwood has received a check that is dated January 12, 2021, in the amount of $125,000. 10. Eastwood has agreed to maintain a cash balance of $500,000 at all times at First National Bank of Yojimbo to ensure future credit availability, 11. Eastwood has purchased $2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days, 12. Currency and coin on hand amounted to $7,700 Instructions a. Compute the amount of cash and cash equivalents to be reported on Eastwood Co's balance sheet at December 31, 2020. b. Indicate the proper reporting for items that are not reported as cash and cash equivalents on the December 31, 2020, balance sheet. E7.2 (LO 1) (Determini