Required information [The following information applies to the questions displayed below.] On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net method of accounting for purchase discounts Required: 1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021. 2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021.
Required information [The following information applies to the questions displayed below.] On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net method of accounting for purchase discounts Required: 1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021. 2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the
sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net method of accounting for purchase discounts
Required:
1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021.
2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1c07bbe-a177-48a2-9f25-c5e83ba2c5c1%2Fb43d7adc-eaab-459e-a24b-eebc472ca953%2Fnlxzyfo.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the
sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net method of accounting for purchase discounts
Required:
1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021.
2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021.
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