Required information [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10./30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used.
Required information [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10./30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer correctly and explain in detail with computation of numbers step by step for better understanding thanks
![Required information
[The following information applies to the questions displayed below.]
Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units
have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10./30.
3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,
assuming that the net method of accounting for cash discounts is used.
3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024,
assuming that the net method of accounting for cash discounts is used.
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14c4ad7c-eec9-4687-807c-bd8d7a45712b%2F027aff3e-08f0-43c9-b378-3eca27e8db49%2Fiu3gm6_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units
have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10./30.
3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,
assuming that the net method of accounting for cash discounts is used.
3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024,
assuming that the net method of accounting for cash discounts is used.
4
Transcribed Image Text:Reg 3A
Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,
assuming that the net method of accounting for cash discounts is used.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
General Journal
NO
Req 38
Date
November 17, 202 Accounts receivable
Sales revenue
Req 3A
2
November 26, 202 Cash
Accounts receivable
Sales discounts forfeited
Req 36
November 17, 202 Accounts receivable
Sales revenue
December 15, 202 Cash
Accounts receivable
Req 38 >
< Req 3A
Debit
42.000
Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024,
assuming that the net method of accounting for cash discounts is used.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
Date
General Journal
Credit
41,160 (
840
Credit
Reg 35
42,000
42.000
Debit
91,000
42,000
91,000
42,000
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