On December 29, 2020, Sabre Company sold merchandise for $8,000 on credit terms, 3/10, n/60. The accounting period ends December 31.

Provide the following entries under the gross method.

a. Record the 2020 sale. Omit the cost of good sold entry.

b. Record collection of the account, assuming collection took place on January 5, 2021.

c. Record collection of the account, assuming collection took place on April 1, 2021.

d. Indicate what should be reported on the balance sheet (ignoring cash) and income statement for both 2020 and 2021.

Note: Indicate a contra account balance with a negative sign.

1. First assume parts a and b occur.

2. Now assume parts a and c occur.