Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $470 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30.

Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used.

Record the sale of 200 units with a list price of $470, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the gross method.

2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.

Record the cash collection on December 15.

3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used.

Record the sale of 200 units with a list price of $470, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the net method.

3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used.

Record the cash collection on November 26.