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Exercise $7-5($Static$)$ Trade and cash discounts; the gross method and the net method compared $[$LO$7-3]$

$[$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 $\frac{2}{10},\frac{8}{30}.$

Exercise $7-5($Static$)$ Parts $1$ and $2$

Required:

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.

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.

Complete this question by entering your answers in the tabs below.

Record the sale of $100$ units with a list price of $$600,$ a $30\%$ trade discount $($if

applicable$),$ with terms of $\frac{2}{10},\frac{n}{30}$ under the gross method.

Note: Enter debits before credits.

View general journal

Record the cash collection on November $26.$

Note: Enter debits before credits.

Record the cash collection on December $15.$

Note: Enter debits before credits.

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