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.