Spry Limited entered into a sale agreement with Power Limited on 3 March 20X3:

The terms of the agreement were that Spry will:

supply 3 300 light fittings to Power in exchange for C330 000;

grant a 10% early settlement discount for full payment received before 3 May 20X3.

• On 3 March 20X3, Spry Limited fully anticipated that it would receive payment within the required period and thus that the discount offered would be granted.

• Spry Limited:

delivered the light fittings to Power Limited on 5 April 20X3; and

received the payment due from Power Limited on 31 May 20X3.

Required:

1. a) Using Spry Limiteds general journal, prepare all journals necessary for the year ended 31 December 20X3. Ignore tax.

2. b) Provide a brief explanation to support your journals