On February 14, 2017, Prime Company sold 50 air-conditioning units to L&P Heating and Cooling. The units were shipped and their titles were transferred to L&P Heating and Cooling on February 14, 2017. The units are listed for retail at $700 each, but L&P was granted a 30% trade discount. All of Prime's sales are subject to terms 2/10, n/30. Prime uses the net method of accounting for sales discounts.

Required:

a. Prepare the journal entry to record the sale on February 14, 2017. (4 pts)

b. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 22, 2017. (8 pts)

c. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2017. (8 pts)

Answer rating: 100% (QA)

a Journal entry to record the sale on February 14 2017 textAccounts Receivable quad 5070007 quad quad 24500 textSales Revenue quad 50700 ... View the full answer