Accounting for Sales Discounts
Response to the following problem:
On December 8, 2010, Lynch Incorporated sold $9,000 of merchandise with terms 2/10, n/EOM. On December 18, 2010, collections were made on sales originally billed for $5,000, and on December 31, 2010, additional collections on sales originally billed for $3,000 were received
Required:
Prepare the journal entries to record the sale, collections, and any required year-end adjustments under (1) the gross price method, and (2) the net price method.