Required information[The following information applies to the questions displayed below.]On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of thesale were 2/10, n/30. Nixon uses a perpetual inventory system and the net method of accounting for purchase discountsRequired: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.

Question
Asked Nov 27, 2019
55 views
 

 

Required information
[The following information applies to the questions displayed below.]
On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the
sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net 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.
help_outline

Image Transcriptionclose

Required information [The following information applies to the questions displayed below.] On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the net 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.

fullscreen
check_circle

Expert Answer

Step 1

1.

Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021, assume comp...

Account title and explanation
Debit
Credit
Date
July 15,2021 Merchandise Inventory (1,000 x$50)
$50,000
$50,000
Accounts payable
|(To record the purchase of inventory on account)
Accounts payable $50,000-($50, 000 x 2%)
$49,000
July 23,2021
$49,000
Cash
|(To record the payment to accounts payable)
help_outline

Image Transcriptionclose

Account title and explanation Debit Credit Date July 15,2021 Merchandise Inventory (1,000 x$50) $50,000 $50,000 Accounts payable |(To record the purchase of inventory on account) Accounts payable $50,000-($50, 000 x 2%) $49,000 July 23,2021 $49,000 Cash |(To record the payment to accounts payable)

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common st...

A: Meaning of shares:Shares are also known as equities, shares are like tiny fractions of a company. Sh...

question_answer

Q: rnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the ...

A: Click to see the answer

question_answer

Q: The noncontrolling interest share that appears in the consolidated income statement is computed as f...

A: 1.Formula to calculate noncontrolling interest share that appears in the consolidated income stateme...

question_answer

Q: Analyzing Inventory Disclosure Comparing LIFO & FIFOThe current asset section of the 2014 and 10...

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that...

question_answer

Q: An employee's rate of pay is $36 per hour, with time-and-a-half for all hours worked in excess of 40...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

question_answer

Q: What is analysis of financial statements?

A: Explain the  meaning of financial statement analysis:Financial statements: Financial statements are ...

question_answer

Q: Stevens Corporation manufactures a single product. The standard cost per unit of product is shown be...

A: Total overhead variance is calculated by subtracting the applied overhead from the actual overhead. ...

question_answer

Q: Explain the estimation of profits up to the date of the death on the basis of time period involved.

A: To compute the deceased partner’s share in estimated profits on the basis of time period involved is...

question_answer

Q: How would i solve #3

A: 1. Calculate the payback period for each year.