Posted by **Bobbi Loffredo** on Sunday, March 20, 2011 at 2:07pm.

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 26. 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.

1. prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26,2009, using the gross method of accounting for purchase discounts.

2. Prepare the journal entry to record the payment on December 15,2009, using the gross method of accounting for purchase discounts.

3. Repeat requirements 1 and 2 using the net method of accounting for purchase discounts.

## Answer This Question

## Related Questions

- math trade discount - In addition to the regular trade discount of 25% and a ...
- Business math - A watch with a list price of $889.00 is sold by a wholesaler at ...
- Linear Programming - I really really need help with this question, i've tried it...
- Calculus - If the derivative can be thought of as a marginal revenue function ...
- Calculus - If the derivative can be thought of as a marginal revenue function ...
- Calculus - If the derivative can be thought of as a marginal revenue function ...
- Calculus - If the derivative can be thought of as a marginal revenue function ...
- Calculus - If the derivative can be thought of as a marginal revenue function ...
- math - Eddings Company had a beginning inventory of 400 units of Product XNA at ...
- math - a computer company can sell 1000 computers if they price them at $500. ...

More Related Questions