Seramin Importers, Inc. sells coffee pots for $ 80 each. On November 12, the company sold 35 to a customer on account with terms of 1/ 15, n/ 30. The customer paid for 25 of the coffee pots on November 27 and paid for the remaining 10 on December 11.
Required
a. Provide the necessary journal entries for Seramin to record these transactions under both the gross and net methods. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.)
b. Provide a comparison of the impact on the income statement for each method.