On December 28, 2021, Tristar Communications sold 17 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 2/10, n/30. Tristar uses the gross method to account for sales discounts. In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022. By how much in 2022ï¼ income before tax will be reduced byï¼

Since the company records its transactions using hte gross method, any discounts will affect 2022 earnings. The journal entries to record these sales are:

December 28, 2021, 17 units sold

Dr Accounts receivable 425,000

    Cr Sales revenue 425,000

January 6, 2022, invoices collected

Dr Cash 416,500

Dr Sales discounts 8,500

    Cr Accounts receivable 425,000

answer; i do believe that the correct answer is ; ///are valued more highly than their cost;

answer; 33,000;