Sales Discounts Taken

Gordon$$s Grocers purchases bread from Buddy$$s Bread Company at $$1\mathrm{.}25$ per loaf. Gordon$$s recently engaged in a customer service contract with Buddy$$s to purchase $117,000$ loaves of Buddy$$s bread. Buddy offered credit to Gordon$$s at terms of $3/15,$ n$/45.$ Buddy expects Gordon to pay within the discount period.

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If an amount box does not require an entry, leave it blank.

Question Content Area

Prepare the journal entry to record the sale using the net method.

Hint: In calculating your answer, use one minus the discount rate $($eg$.1-0\mathrm{.}02=\mathrm{.}98)$