Question

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,200 tires to the Nixon Car Company for $65 each. The terms of the sale were 3/15, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection 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 collection on August 15, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

Answer 1

Req 1
Date	General journal				Debit	Credit
7/15/2021	Accounts receivable				78000
	sales					78,000
7/23/2021	Cash				75660
	Sales discount				2340
	Accounts receivable					78000
Req 2
Date	General journal				Debit	Credit
7/15/2021	Accounts receivable				78000
	sales					78,000
8/15/2021	Cash				78000
	Accounts receivable					78000