80.2K

Verified Solution

Link Copied!

Exercise 7-7 (Algo) Cash discounts; the net method [LO7-3] Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,200 tires to the Nixon Car Company for $70 each. The terms of the sale were 3/10, 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, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment 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 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 Date General Journal Debit Credit July 15, 2021 Accounts receivable 81,400 Sales revenue 81,400 July 23, 2021 Cash 81,400 81,400 Accounts receivable Required 1 Required 2 > Required 1 Required 2 Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on August 15, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit July 15, 2021 Accounts receivable 81,400 Sales revenue 81,400 August 15, 2021 Cash 84,000 81,400 x Accounts receivable Sales discounts forfeited 2,600

Answer & Explanation Solved by verified expert

See Answer