Presented below is information from TextTech Inc.
July 1 Sold $200,000 of laptops to Marcell Company with term 3/15, n/30. TextTech uses the gross method to record cash discounts. TextTech estimates allowances of $15,000 will be honored on these sales.
July 10 TextTech received payment from Marcell Company for the full amount owed from the July transaction.
July 17 Sold $1.5 million in laptops and pre-wired cases to Liquid Communications with terms of 2/10, n/30.
July 30 Liquid Communications paid TextTech for its purchase on July 17.
Required: Prepare the necessary journal entries for TextTech.