Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,700 tires to the...

Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,700 tires to the Nixon Car Company for $80 each. The terms of the sale were 3/10, n/30. Harwell uses the net method of accounting for cash discounts.

Required:
1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on July 23, 2018.
2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on August 15, 2018

Expert Solution

All working forms part of the answer
Requirement 1

Date	Accounts title	Debit	Credit
15-Jul-18	Accounts receivables [2700 x 80 x 97%]	$ 209,520
	Sales revenue		$ 209,520
	(Sales recorded)

23-Jul-18	Cash	$ 209,520
	Accounts receivables		$ 209,520
	(Cash received within discount term of 10 days)

Requirement 2

Date	Accounts title	Debit	Credit
15-Jul-18	Accounts receivables [2700 x 80 x 97%]	$ 209,520
	Sales revenue		$ 209,520
	(Sales recorded)

15-Aug-18	Cash	$ 216,000
	Sales Discount forfeited		$ 6,480
	Accounts receivables		$ 209,520
	(Cash received after discount term of 10 days)

ekkarill92 answered 2 years ago

Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,400 tires to the...

Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,400 tires to the Nixon Car Company for $40 each. The terms of the sale were 3/10, 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, 2018. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and...

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,500 tires to the...

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,500 tires to the Nixon Car Company for $60 each. The terms of the sale were 3/20, 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...

On July 15, 2018, the Nixon Car Company purchased 3,000 tires from the Harwell Company for...

On July 15, 2018, the Nixon Car Company purchased 3,000 tires from the Harwell Company for $30 each. The terms of the sale were 2/10, n/30. Nixon uses a periodic 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, 2018. 2. Prepare the journal entry to record the payment on August 15, 2018. 3. If Nixon instead uses a perpetual...

On July 15, 2018, the Nixon Car Company purchased 2,300 tires from the Harwell Company for $35 each. The terms of the sa...

On July 15, 2018, the Nixon Car Company purchased 2,300 tires from the Harwell Company for $35 each. The terms of the sale were 4/10, n/30. Nixon uses a periodic 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, 2018. 2. Prepare the journal entry to record the payment on August 15, 2018. 3. If Nixon instead uses a perpetual...

On July 15, 2021, the Nixon Car Company purchased 1,500 tires from the Harwell Company for...

On July 15, 2021, the Nixon Car Company purchased 1,500 tires from the Harwell Company for $46 each. The terms of the sale were 3/10, 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.

On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $840,000...

On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $840,000 and $370,000, respectively. The book value of the patent and equipment on the date of sale were $165,000 and $454,000 (cost of $649,000 less accumulated depreciation of $195,000), respectively. Prepare the journal entries to record the sales of the patent and equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

XYZ Company manufactures a variety of highly technical automobile parts, which are sold at home and...

XYZ Company manufactures a variety of highly technical automobile parts, which are sold at home and in five foreign countries. The company is large and growing rapidly. Which is the structure for this company? a. Cross-sectional structure b. Functional structure c. Divisional structure d. Matrix structure e. Project structure

Duval Company acquired a machine on January 1, 2018, that costs $2,700 and has an estimated...

Duval Company acquired a machine on January 1, 2018, that costs $2,700 and has an estimated residual value of $200. Required a) Complete the following schedule for 2019 using: A) straight-line, B) units-ofproduction, C) double declining-balance Method Estimated Useful Life or Units Depreciation Expense for 2019 Accumulated Depreciation at 12/31/2019 A SL 5 years B UOP 10,000 units (estimated total) 1,000 units (actual year 2018) 1,200 units (actual year 2019) C DB 5 years b) Duval estimates the future cash...

The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton...

The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton is planning for next year (2020) by developing a master budget by quarters. Grilton’s balance sheet for December 31, 2019 follows: GRILTON TIRE COMPANY Balance Sheet December 31, 2019 Assets Current Assets: Cash $ 39,000 Accounts Receivable 40,000 Raw Materials Inventory 2,400 Finished Goods Inventory 8,700 Total Current Assets $ 90,100 Property, Plant and Equipment: Equipment 177,000 Less: Accumulated Depreciation (42,000) 135,000 Total Assets $225,100 Liabilities Current Liabilities: Accounts Payable $ 8,000 Stockholder’s Equity Common Stock,...

The Gessing Tire Company manufactures racing tires for bicycles. Gessing sells tires for $85 each. Gessing...

The Gessing Tire Company manufactures racing tires for bicycles. Gessing sells tires for $85 each. Gessing is planning for the next year by developing a master budget by quarters. Gessing’s balance sheet for December 31, 2018, follows: Gessing Tire Company| Balance sheet |December 31, 2018 Current Assets: Cash $ 52,000 Accounts Receivable 35,000 Raw Materials Inventory 1,900 Finished Goods Inventory 2,400 ________ Total Current Assets $ 91,300 Property, Plant, and Equipment: Equipment 142,000 Less: Accumulated Depreciation (50,000) 92,000 _________ ________...

Question