Question
Tracy Company, a manufacturer of air conditioners, sold 210 units to Thomas Company on November 17, 2016. The units have a list price of $200
Tracy Company, a manufacturer of air conditioners, sold 210 units to Thomas Company on November 17, 2016. The units have a list price of $200 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a periodic inventory system. |
Required: |
1. | Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2016, using the gross method of accounting for purchase discounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | ||||||
| *Record the purchase of air conditioners. *Record payment of November 17 purchase.
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