Required information
Exercise Algo Trade and cash discounts; the gross method and the net method compared LO
The following information applies to the questions displayed below.
Tracy Company, a manufacturer of air conditioners, sold units to Thomas Company on November The units
have a list price of $ each, but Thomas was given a trade discount. The terms of the sale were
Exercise Algo Part
a Prepare the journal entries to record the sale on November ignore cost of goods and collection on November
assuming that the net method of accounting for cash discounts is used.
b Prepare the journal entries to record the sale on November ignore cost of goods and collection on December
assuming that the net method of accounting for cash discounts is used.
Complete this question by entering your answers in the tabs below.
Prepare the journal entries to record the sale on November ignore cost of goods and collection on November assuming
that the net method of accounting for cash discounts is used.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
