Record the cash collection on July 23. Record the cash collection on August 15.
ID: 2569043 • Letter: R
Question
Record the cash collection on July 23.
Record the cash collection on August 15.
Harwell Company manufactures automobile tires. On July 15, 2016, 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 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, 2016. (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 2 Record the sale of 1,100 tires for $60 each with a term of 2/10, n/30 under the gross method of accounting for cash discounts. Note: Enter debits before credits. Date General Journal Debit Credit July 15, 2016Explanation / Answer
Date
Accounts title and explanation
Debit
Credit
July 15, 2016
Accounts receivables
66000
Sales Revenue (1100*60)
66000
Being credit sales
July 23, 2016
Cash (66000 - 1320)
64680
Sales Discount (66000*2%)
1320
Accounts Receivable
66000
Being Cash Collection within 10 days and recognition of sales discount of 2%
Date
Accounts title and explanation
Debit
Credit
July 15, 2016
Accounts receivables
66000
Sales Revenue (1100*60)
66000
Being credit sales
August 15, 2016
Cash
66000
Accounts Receivable
66000
Being Cash Collection
Date
Accounts title and explanation
Debit
Credit
July 15, 2016
Accounts receivables
66000
Sales Revenue (1100*60)
66000
Being credit sales
July 23, 2016
Cash (66000 - 1320)
64680
Sales Discount (66000*2%)
1320
Accounts Receivable
66000
Being Cash Collection within 10 days and recognition of sales discount of 2%
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