Question #1 Below are some selected transactions for the ABC Company. ABC uses the gross method to record sales. Their terms of sales are 3/15, n/60, f.o.b. shipping point.

2/1 Sold, $20,000 of merchandise to Customer A.

2/14 Sold $30,000 of merchandise to Customer B

2/15 Received payment from Customer A

3/5 Received payment from Customer B

3/19 Wrote off the balance of Customer D account of $200 (face value) 3/31 In preparation for filing quarterly financial statements, ABC Company made adjusting entries for the following

(a) Estimated bad debts to be 2% of the ending accounts receivable of $30,000. The ending allowance for doubtful accounts was $215

Question #2

Record the transactions in Question #1 assuming ABC uses the net method to record sales transactions