Question
Harwell Company manufactures automobile tires. On July 15, 2016, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of
Harwell Company manufactures automobile tires. On July 15, 2016, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the net method of accounting for cash discounts.
Required: | |
1. | Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on July 23, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
1.
Record the sale of 1,000 tires for $50 each with a term of 2/10, n/30 under the net method of accounting for cash discounts.
2.
Record the cash collection on July 23.
2. | Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on August 15, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the sale of 1,000 tires for $50 each with a term of 2/10, n/30 under the net method of accounting for cash discounts. 2. Record the cash collection on August 15. |
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