ctice Problems for Exam 26 Help Save Exercise 7-6 Cash discounts; the gross meth

Question

ctice Problems for Exam 26 Help Save Exercise 7-6 Cash discounts; the gross method [LO7-3) Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,000 tires to the each. The terms of the sale were 2/15, n/30. Harwell uses the gross method of accounting for cash discounts. Nixon Car Company for $50 02-5052 Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. s to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2018. Complete this question by entering your answers in the tabs below. ook Required 1 Required 2 nt Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) nt View transaction list nces Journal entry worksheet

Explanation / Answer

Journal entries Date Accounts title and explanations Debit $ Credit $ case-1 15-Jul Accounts receivable Account Dr. 100000     Sales revenue 100000 23-Jul Cash Account Dr. 98000 Sales discount Account Dr. (100000*2%) 2000      Accounts receivable 100000 Case-2 15-Jul Accounts receivable Account Dr. 100000     Sales revenue 100000 15-Aug Cash Account Dr. 100000      Accounts receivable 100000

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