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Exercise $7-5($Algo$)$ Trade and cash discounts; the gross method and the net method compared $[$LO$7-3]$

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Tracy Company, a manufacturer of air conditioners, sold $140$ units to Thomas Company on November $17,2024.$ The units have a list price of $$500$ each, but Thomas was given a $20\%$ trade discount. The terms of the sale were $\frac{3}{10},\frac{n}{30}.$

Exercise $7-5($Algo$)$ Part $3$

$3-$a$.$ Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on November $26,2024,$ 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 $15,2024,$ assuming that the net method of accounting for cash discounts is used.

Complete this question by entering your answers in the tabs below.

Req $3A$

Req $3$B

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on Noveml that the net method of accounting for cash discounts is used.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account flelc

Journal entry worksheet

$1$

$2$

Record the sale of $140$ units with a list price of $$500,$ a $20\%$ trade discount $($if applicable$),$ with terms of $\frac{3}{10},\frac{n}{30}$ under the net method.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Doblt,Credlt$],[$November $17,2024,,,],[,,,],[,,,]]$