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On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net...

  1. On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received on April 8 and the remaining payment on $16,000 sales was received on April 27.

(1). Assuming Kelvin uses the net method of accounting for sales discounts.

Please make journal entries on April 2, April 8, and April 27.

(2). Assuming Kelvin uses the gross method of accounting for sales discounts.

Please make journal entries on April 2, April 8, and April 27.

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