On February 14, 2009, Prime Company sold 50 air conditioning units to L&P Heating and Cooling. The units list for $700 each but L&P was granted a 30% trade discount. All of Prime's sales are subject to terms 2/10, n30. Prime uses the net method of accounting for sales discounts.
Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 22, 2009.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2009.

Question

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The Answer of On February 14, 2009, Prime Company sold 50 air conditioning units to L&P Heating and Cooling. The units list for $700 each but L&P was granted a 30% trade discount. All of Prime's sales are subject to terms 2/10, n30. Prime uses the net method of accounting for sales discounts.
Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 22, 2009.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2009.

On February 14, 2009, Prime Company Sold 50 Air Conditioning