Final answer:
The nov 17 method refers to a method of accounting for sales transactions where the sales revenue is recognized on the date of sale, regardless of when the payment is received.
Step-by-step explanation:
The nov 17 method refers to a method of accounting for sales transactions where the sales revenue is recognized on the date of sale, regardless of when the payment is received. In this case, on November 17, 2018, Tracy Company sold 100 air conditioners to Thomas Company. The units had a list price of $500 each, but Thomas Company was given a 30% trade discount, which means they paid $500 - (30% of $500) = $350 for each unit.
The terms of the sale were 2/10, n/30, which means that if Thomas Company pays within 10 days, they will receive a 2% discount. Otherwise, the full amount is due within 30 days. Since the sale was made on November 17, Thomas Company has the option to pay within 10 days and receive a discount. If they do so, they will pay $350 - (2% of $350) = $343 per unit. If they pay after 10 days but within 30 days, they will pay the full amount of $350 per unit.
The nov 17 method allows Tracy Company to record the revenue from the sale on November 17, regardless of when the payment is received. This method provides Tracy Company with a clear record of their sales and allows them to assess their financial performance on a timely basis.