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Required information Exercise 7-5(Algo) Trade and cash discounts; the gross method and the net...

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Accounting

Required information
Exercise 7-5(Algo) Trade and cash discounts; the gross method and the net method compared [LO7-3]
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[The following information applies to the questions displayed below.]
Tracy Company, a manufacturer of air conditioners, sold 125 units to Thomas Company on November 17,2024. The units have a list price of $720 each, but Thomas was given a 30% trade discount. The terms of the sale were 210/
, n30/
.
Exercise 7-5(Algo) 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.

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