Tracy Company, a manufacturer of air conditioners, sold 120 units to Thomas Company on November 17, 2021. The units have a list price of $550 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30. Thomas uses a perpetual inventory system.

3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.

Record the purchase of air conditioners.

Record payment on November 26 using the net method of accounting for purchase discounts.

Alternatively, record payment on December 15 using the net method of accounting for purchase discounts.