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! 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 220 units to Thomas Company on November 17, 2021. The units have a list price of $400 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, 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. Journal entry worksheet 1 2 Record the sale of 220 units with a list price of $400, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the net method. Note: Enter debits before credits. Debit Credit Date General Journal November 17, 2021 Accounts receivable Sales revenue Journal entry worksheet Record the cash collection on December 15. Note: Enter debits before credits. General Journal Debit Credit Date December 15, 2021 Recordenta Conranta

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