Sales Discounts

On November 1, Rosario Company sold goods on account for $7,000. The terms of the sale were 3/10, n/40, allowing sales discounts to be taken against partial payments. Payment in satisfaction of $3,000 of this amount was received on November 9. Payment in satisfaction of the remaining $4,000 was received on December 9.

• 1. How much cash did Rosario Company collect from this $7,000 account?
• 2. Using the gross method, what journal entries would Rosario make on November 9 and December 9?
• 3. Using the net method, what journal entries would Rosario make on November 9 and December 9?