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Exercise $7-5($Algo$)$ Trade and cash discounts; the gross method and the net method compared $[$LO$7-3]$

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Tracy Company, a manufacturer of air conditioners, sold $125$ units to Thomas Company on November $17,2024.$ The units have a list price of $$720$ each, but Thomas was given a $30\%$ trade discount. The terms of the sale were $210/$

$,$ n$30/$

$.$

Exercise $7-5($Algo$)$ Parts $1$ and $2$

Required:

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on November $26,2024,$ assuming that the gross method of accounting for cash discounts is used.

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on December $15,2024,$ assuming that the gross method of accounting for cash discounts is used.