Question

please complete both required entries

Exercise 7-7 (Algo) Cash discounts; the net method (LO7-3) Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,100 tires to the Nixon Car Company for $60 each. The terms of the sale were 2/10, 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.) View transaction list Journal entry worksheet Record the sale of 1,100 tires for $60 each with a term of 2/10, n/30 under the net method of accounting for cash discounts. Note: Enter debits before credits.

Answer 1

1
Date	General Journal	Debit	Credit
July 15, 2021	Accounts receivable	64680		=1100*60*(1-2%)
	Sales revenue		64680
July 23, 2021	Cash	64680
	Accounts receivable		64680
2
Date	General Journal	Debit	Credit
July 15, 2021	Accounts receivable	64680
	Sales revenue		64680
August 15, 2021	Cash	66000		=1100*60
	Accounts receivable		64680
	Interest revenue		1320