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Required information Exercise 7 - 5 ( Algo ) Trade and cash discounts; the gross method and the net method compared [ LO 7 -
Required information
Exercise Algo Trade and cash discounts; the gross method and the net method compared LO
The following information applies to the questions displayed below.
Tracy Company, a manufacturer of air conditioners, sold units to Thomas Company on November The units have a list price of $ each, but Thomas was given a trade discount. The terms of the sale were
Exercise Algo Part
a Prepare the journal entries to record the sale on November ignore cost of goods and collection on November assuming that the net method of accounting for cash discounts is used.
b Prepare the journal entries to record the sale on November ignore cost of goods and collection on December assuming that the net method of accounting for cash discounts is used.
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