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Question: 1. On December 28, 2016, Tristar Communications sold 12 units of its new satellite uplink system to various customers for $15,000 each. The terms of each sale were 3/20, n/30. Tristar uses the gross method to account for sales discounts.
In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2017? By how much?
2. On December 28, 2016, Tristar Communications sold 17 units of its new satellite uplink system to various customers for $30,000 each. The terms of each sale were 1/20, n/30. Tristar uses the net method to account for sales discounts.
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