Sales Discounts Taken

Gordon's Grocers purchases bread from Buddy's Bread Company at $$1\mathrm{.}20$ per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase $114,000$ loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of $\frac{3}{15},\frac{n}{45}.$ Buddy expects Gordon to pay within the discount period.

Required:

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

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

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

Record sale

Then, prepare the journal entry assuming the payment is made within $10$ days $($within the discount period$).$

Record collection within discount period