Question

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Required Information [The following information applies to the questions displayed below.) On July 15, 2021, the Nixon Car Company purchased 1,200 tires from the Harwell Company for $55 each. The terms of the sale were 2/10, 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. Complete this question by entering your answers in the tabs below. 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.) View transaction list Journal entry worksheet Record purchase of tires. Note: Enter debits before credits. General Journal Credit Date July 15, 2021 Debit 66,000 Accounts payable 66.000 Record entry Clear entry View general journal < Prev 1

Answer 1

1
Date	General Journal	Debit	Credit
July 15,2021	Inventory	66000		=1200*55
	Accounts payable		66000
Date	General Journal	Debit	Credit
July 23,2021	Accounts payable	66000
	Inventory		1320	=66000*2%
	Cash		64680
2
Date	General Journal	Debit	Credit
August 15,2021	Accounts payable	66000
	Cash		66000