Ask Question
BusinessBusiness
23 June, 22:04

Tracy company, a manufacturer of air conditioners, sold 100 units to thomas company on november 17, 2013. the units have a list price of $500 each, but thomas was given a 30% trade discount. the terms of the sale were 2/10, n/30. thomas uses a periodic inventory system. required: 1. prepare the journal entries to record the purchase by thomas on november 17 and payment on november 26, 2013, using the gross method of accounting for purchase discounts.

+3
Answers (1)
  1. 23 June, 22:20
    0
    500*.30 = 150 (trade discount per air conditioner) 500 - 180 = 320

    100*320 = 32,000

    November 17Debit: Accounts receivable 32,000Credit: Merchandise inventory 32,000

    32,000*.02 = 640 (purchase discount per air conditioner) 32,000 - 640 = 31,360

    November 26Debit: Cash 31,360Debit: Sales discounts 640Credit: Accounts receivable 32,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Tracy company, a manufacturer of air conditioners, sold 100 units to thomas company on november 17, 2013. the units have a list price of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
During January, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit Total On Units Cost Cost Hand Balance on 1/1 1,000 $1 $1,000 1,000 Purchased on 1/7 600 3 1,800 1,600
Answers (1)
Mark works strictly on commission of his gross sales from selling two different products for his company. last month, his gross sales were $90 comma 00090,000.
Answers (1)
When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15.
Answers (1)
Nominal GDP is some year is $15 trillion. Real GDP in that same year is $11 trillion. What is the value of the GDP price index in that year? Select one: a. 152 b. 136 c. 200 d. 375
Answers (1)
Making an economically rational decision requires Select one: a. considering the prospective benefits and costs to oneself. b. always considering the long-run. c. avoiding opportunity cost. d. equal consideration for your own and others' welfare.
Answers (1)
New Questions in Business
The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison.
Answers (1)
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 240 units at $10 on January 1, (2) 480 units at $11 on January 8, and (3) 780 units at $12 on January 29.
Answers (1)
On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31.
Answers (1)
The rate of increase in saving is less than the rate of increase in income A. true B. false
Answers (1)
An ideal marketing penetration strategy would be to offer cash backs and discounts on products to customers a. True b. False
Answers (2)
Home » Business » Tracy company, a manufacturer of air conditioners, sold 100 units to thomas company on november 17, 2013. the units have a list price of $500 each, but thomas was given a 30% trade discount. the terms of the sale were 2/10, n/30.
Sign Up Forgot Password?