EFFECTS OF SALES DISCOUNTS. Castore Security Systems makes all sales on credit, with terms 2/10, n/30. During 19x9, the list price (prediscount) of goods sold was $720,000. Customers paid $550,000 (list price) of these sales within the discount period and the remaining $170,000 (list price) after the discount period. Castore uses the gross method of recording sales. lol REQUIRED:

1. Compute the amount of sales that Castore recorded for 19x9.

2. Compute the amount of cash that Castore collected from these sales.

3. Prepare a summary journal entry to record these sales and a second summary entry to record the cash collected.