Prepare the journal entries to record the purchase

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Question - Tracy Company, a manufacturer of air conditioners, sold 180 units to Thomas Company on November 17, 2021. The units have a list price of $500 each, but Thomas was given a 25% trade discount, The terms of the sale were 2/10, n/30 Thomas uses a perpetual inventory system.

Required - Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.

Reference no: EM133161758

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