On May 5, 2013, GCD advisors billed Richardson's Wholesale Hardware $15000 for consulting services provided during April GCD offered terms of 2/10, n/30.
1.Prepare the journal entry to record the sale using the gross method.
2.Prepare the journal entry assuming the payment is received on May 15, 2013. (within the discount period)
3.Prepare the journal entry assuming the payment is received on May 25, 2013. (After the discount period)
4.How would sales revenues be disclosed on the income statement assuming the payment is made within 10 days?