Required informationExercise 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 unitshave 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 - 23-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 3APrepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assumingthat the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)Req 38View transaction listJournal entry worksheet<12Record the sale of 200 units with a list price of $450, a 30% trade discount (ifapplicable), with terms of 3/10, n/30 under the net method.Note: Enter debits before credits.DateNovember 17, 2021Record entryGeneral JournalClear entry> required" in the first account field.)View transaction listJournal entry worksheet<12Record the cash collection on November 26.Note: Enter debits before credits.DateNovember 26, 2021Record entryGeneral JournalClear entryRed 3ADebitCreditView general journalReq 3B >

Net Price Method - Under net price method of Account Receivable are recorded by deducting the…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunlight Co. Started operations on January 1, 2018, selling home appliances on instalment basis. For 2018 and 2019, the following information are available: 2018 2019 Installment Sales Cost of Installment sales Collections: For 2018 sales For 2019 sales P1,200,000 720,000 P1,500,000 1,050,000 630,000 450,000 900,000 On 2019, an instalment sales account balance of 2008 was defaulted and the merchandise, with current market value of P15,000, was repossessed. The account balance defaulted was P24,000. 17. The gross profit rate in 2019? а. 30% b. 40% c. 35% d. 45% 18. The balance of the deferred gross profit account as at the end of 2019 was a. 218,400 b. 228,000 c. 275,000 d. 450,000 19. How much is the gain or loss on repossession? a. Gain P600 b. Loss P1,800 c. Loss P9,000 d. Gain P1,800 LILU
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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 - 1 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Prepare the journal entries to record the sale on November 17 (ignore cost of goods)…
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