Required information [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. 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./30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the gross 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 200 units to Thomas Company on November 17, 2024. 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./30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the gross method of accounting for cash discounts is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
2
![Record the cash collection on November 26.
Note: Enter debits before credits.
Date
November 26, 2024 Cash
1
Sales discounts
2
Date
General Journal
Accounts receivable
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.
Note: Enter debits before credits.
General Journal
November 17, 2024 Accounts receivable
Sales revenue
Debit
Required information
[The following information applies to the questions displayed below.]
70,500
Complete this question by entering your answers in the tabs below.
Credit
Debit
70,500
69,090
1,410
7
Credit
70,500
Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. 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, /30.
Required:
1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,
assuming that the gross method of accounting for cash discounts is used.
2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024,
assuming that the gross method of accounting for cash discounts is used.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2e92f71-bdde-4791-b5bf-45a73c1934f7%2F844cb003-4559-4971-8f68-79c1517c304e%2Fyvv5ldk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Record the cash collection on November 26.
Note: Enter debits before credits.
Date
November 26, 2024 Cash
1
Sales discounts
2
Date
General Journal
Accounts receivable
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.
Note: Enter debits before credits.
General Journal
November 17, 2024 Accounts receivable
Sales revenue
Debit
Required information
[The following information applies to the questions displayed below.]
70,500
Complete this question by entering your answers in the tabs below.
Credit
Debit
70,500
69,090
1,410
7
Credit
70,500
Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. 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, /30.
Required:
1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,
assuming that the gross method of accounting for cash discounts is used.
2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024,
assuming that the gross method of accounting for cash discounts is used.
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