Tracy Company, a manufacturer of air conditioners, sold $70$ units to Thomas Company on November $17,2021.$ The units have a list price of $$500$

each. The terms of the sale were $2/10,$ n$/30.$ Thomas uses a perpetual inventory system.

Required:

$1.$ Prepare the journal entries to record the purchase by Thomas on November $17$ and payment on November $26,2021.$ Thomas

uses the gross method of accounting for purchase discounts.

$2.$ Prepare the journal entry for the payment, assuming instead that it was made on December $15,2021.$

Date General Journal Debit Credit

$17-$Nov$-21$

$26-$Nov$-21$

$15-$Dec$-21$

$3.$ Prepare the journal entries to record the purchase by Thomas on November $17$ and payment on November $26,2021.$ Thomas

uses the net method of accounting for purchase discounts.

$4.$ Prepare the journal entry for the payment, assuming instead that it was made on December $15,2021.$

Date General Journal Debit Credit

$17-$Nov$-21$

$26-$Nov$-21$

$15-$Dec$-21$