On July 15, 2021, the Nixon Car Company purchased 3,000 tires from the Harwell Company for $30 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts.

3. If Nixon instead uses a periodic inventory system, explain any changes to the journal entries created in requirements 1 and 2.

Required information [The following information applies to the questions displayed below.] On July 15, 2021, the Nixon Car Company purchased 3,000 tires from the Harwell Company for $30 each. The terms of the sale were 2/10,n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts. . If Nixon instead uses a periodic inventory system, explain any changes to the journal entries created in requirements 1 and 2