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Exercise $7-5($Algo$)$ Trade and cash discounts; the gross method and the net method

compared $[$LO$7-3]$

$[$The following information applies to the questions displayed below.$]$

Tracy Company, a manufacturer of air conditioners, sold $100$ units to Thomas Company on

November $17,2024.$ The units have a list price of $$800$ each, but Thomas was given a $25\%$ trade

discount. The terms of the sale were $\frac{2}{10},\frac{n}{30}.$

Exercise $7-5($Algo$)$ Part $3$

$3-$a$.$ Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on November

$26,2024,$ assuming that the net method of accounting for cash discounts is used.

$3-$b$.$ Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on

December $15,2024,$ assuming that the net method of accounting for cash discounts is used.

Complete this question by entering your answers in the tabs below.

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on November $26,2024,$

that the net method of accounting for cash discounts is used.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the sale of $100$ units with a list price of $$800,$ a $25\%$ trade discount $($if

applicable$),$ with terms of $\frac{2}{10},\frac{n}{30}$ under the net method.

Note: Enter debits before credits.

Record the cash collection on November $26.$

Record the sale of $100$ units with a list price of $$800,$ a $25\%$ trade discount $($if applicable$),$ with terms of $2/10,$ n$/30$ under the net method.

Record the cash collection on December $15.$