Appendix 1: Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the discount. 20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The cost of the merchandise sold was $3,300. 25. Received payment on account for the sale of August 9. 31. Received payment on account for the sale of August 20. a. Journalize the August transactions using the gross method of recording sales discounts. If an amount box does not require an entry, leave it blank. Accounts Receivable-M. Quinn 7,500 Aug. 5 Sales 7,500 5 Cost of Goods Sold 4,200 Inventory 4,200 9 Accounts Receivable-R. Busch 4,000 Sales 4,000 Cost of Goods Sold 9 2,100 b. Journalize the August transactions using the net method of recording sales discounts. If an amount box does not require an entry, leave it blank. Aug. 5 5 9 15 20 20