Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,600 tires to the Nixon Car Company for $30 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 15, 2021 Accounts receivable Sales revenue 2 July 23, 2021 Cash Sales discounts Accounts receivable

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,600 tires to the Nixon Car Company for $30 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 15, 2021 Accounts receivable Sales revenue 2 July 23, 2021 Cash Sales discounts Accounts receivable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,600 tires to the Nixon Car Company for $30
each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accounting for cash discounts.
Required:
1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021.
2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. (If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list View journal entry worksheet
No
Date
General Journal
Debit
Credit
July 15, 2021 Accounts receivable
1
Sales revenue
2
July 23, 2021
Cash
Sales discounts
Accounts receivable

Required 1
Required 2
Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021. (If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
View journal entry worksheet
View transaction list
No
Date
General Journal
Debit
Credit
1
July 15, 2021
Accounts receivable
Sales revenue
Aug. 15, 2021
Cash
Accounts receivable
2.

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