Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Exercise 7-5 (Algo) Part - 2 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. 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.
Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Exercise 7-5 (Algo) Part - 2 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. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with attached questions, thanks much.
![Required Information
Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared [LO7-3]
[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, 2021. The units
have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.
Exercise 7-5 (Algo) Part - 2
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.
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.
Complete this question by entering your answers in the tabs below.
Req 3A
Req 3B
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. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list
Journal entry worksheet
< 1 2
Record the sale of 200 units with a list price of $450, a 30% trade discount (if
applicable), with terms of 3/10, n/30 under the net method.
Note: Enter debits before credits.
Date
November 17, 2021
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05848523-8d3f-47c3-aa28-13696e328ead%2F9de30034-baa5-46c4-ae75-a454e84d2206%2Fsvays4l_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared [LO7-3]
[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, 2021. The units
have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.
Exercise 7-5 (Algo) Part - 2
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.
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.
Complete this question by entering your answers in the tabs below.
Req 3A
Req 3B
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. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list
Journal entry worksheet
< 1 2
Record the sale of 200 units with a list price of $450, a 30% trade discount (if
applicable), with terms of 3/10, n/30 under the net method.
Note: Enter debits before credits.
Date
November 17, 2021
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
![Required Information
Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared [LO7-3]
[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, 2021. The units
have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.
Exercise 7-5 (Algo) Part - 2
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.
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.
Complete this question by entering your answers in the tabs below.
Req 3A
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. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list
Req 3B
Journal entry worksheet
<
1 2
Record the sale of 200 units with a list price of $450, a 30% trade discount (if
applicable), with terms of 3/10, n/30 under the net method.
Note: Enter debits before credits.
Date
November 17, 2021
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05848523-8d3f-47c3-aa28-13696e328ead%2F9de30034-baa5-46c4-ae75-a454e84d2206%2F6wwsvj_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net method compared [LO7-3]
[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, 2021. The units
have a list price of $450 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.
Exercise 7-5 (Algo) Part - 2
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.
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.
Complete this question by entering your answers in the tabs below.
Req 3A
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. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list
Req 3B
Journal entry worksheet
<
1 2
Record the sale of 200 units with a list price of $450, a 30% trade discount (if
applicable), with terms of 3/10, n/30 under the net method.
Note: Enter debits before credits.
Date
November 17, 2021
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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