The Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2007, with terms

Question:

The Eastman sells merchandise with a list price of $13,000 on February 1, 2007, with terms of 1/10, n/30. On February 10, 2007, payment was received on merchandise originally billed for $7,500, and the balance due was received on February 28, 2007.

Required
Prepare journal entries to record the preceding information using
(1) The gross price method, and
(2) The net price method.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...