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Exercise $7-5($Algo$)$ Trade and cash discounts; the gross method and the net method

compared $[$L$07-3]$

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Tracy Company, a manufacturer of air conditioners, sold $100$ units to Thomas Company on

November $17,2024.$ The units have a list price of $$800$ each, but Thomas was given a $25\%$ trade

discount. The terms of the sale were $\frac{2}{10},\frac{n}{30}.$

Exercise $7-5($Algo$)$ Parts $1$ and $2$

Required:

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on

November $26,2024,$ assuming that the gross method of accounting for cash discounts is used.

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on

December $15,2024,$ assuming that the gross method of accounting for cash discounts is used.

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

Prepare the journal entries to record the sale on November $17($ignore cost of goods$)$ and collection on December $15,2024,$

that the gross 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 field.

Journal entry worksheet

$12$

Record the cash collection on December $15.$

Note: Enter debits before credits.