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question tracy company a manufacturer of air conditioners sold 280units to thomas co 4289002

Question

Tracy Company, a manufacturer of air conditioners, sold 280units to Thomas Company on November 17, 2016. The units have a listprice of $300 each, but Thomas was given a 40% trade discount. Theterms of the sale were 2/10, n/30. Thomas uses a periodic inventorysystem.

Prepare the journal entries to record the purchase by Thomas onNovember 17 and payment on November 26, 2016, using the grossmethod of accounting for purchase discounts. (If no entryis required for a transaction/event, select “No journal entryrequired” in the first account field.)

Prepare the journal entry to record the payment on December 15,2016, using the gross method of accounting for purchase discounts.(If no entry is required for a transaction/event, select”No journal entry required” in the first accountfield.)

Repeat requirements 1 and 2 using the net method of accountingfor purchase discounts. (If no entry is required for atransaction/event, select “No journal entry required” in the firstaccount field.)

 

 

 

   
 

 

 

   

 

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