Required information The following information applies to the questions displayed below.) On July 15, 2021,...
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Required information The following information applies to the questions displayed below.) On July 15, 2021, the Nixon Car Company purchased 2,100 tires from the Harwell Company for $40 each. The terms of the sale were 3/10, n/30. Nixon uses a perpetual Inventory system and the gross 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 1 Required 2 Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Date July 15, 2021 Debit 84,000 Inventory Accounts payable O 84,000 July 23, 2021 84,000 Accounts payable Cash 84,000 X Required 1 Required 2 Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Date August 15, 2021 Debit 2,520 X
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