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Chrome File Edit View History Bookmarks People Window Help イ令58%「- E Tue 1:56:39 AM Nupur Kaur Q。Ξ ● N Netflix 4. x E, Forum: Yo × ) Pinterest × Peoria Emx @ Spinbot.c × . Cengage × : Cengage: x D chapter ε × R Facebook x e Accountir x、 Divyot ← ⓘ ezto.mheducation.com/hm.tpx Apps 。▶ Non Stop Bhangr N Netflix O Learn Kirtan : Deh s…-online books Course: F 17 Planeta-.. Cengage NOWV2 | A…。(1) Old Bollywood s.. Other Bookmarks On July 15, 2016, the Nixon Car Company purchased 1,400 tires from the Harwell Company for S45 each. The terms of the sale were 2/10, n/30. Nixon uses a periodic 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, 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 Record purchase of tires Note: Enter debits before credits. Date General Journal Debit Credit July 15, 2016 39
Expert Answer
| General Journal | ||||
| Date | Account Title and Explanation | Post. Ref. | Debit ($) | Credit ($) |
| July 15, 2016 | Purchases | 63000 | ||
| Account Payable | 63000 | |||
| (To record purchase of 1400 tires @$45 each) | ||||
| July 23, 2016 | Account Payable | 63000 | ||
| Purchase Discount | 1260 | |||
| Cash | 61740 | |||
| (To record payment of purchase and discount on making payment) | ||||
Working Note:
1. Under gross method of accounting for purchase discount whole amount of purchase is recorded at the time of purchase.
2. Amount of discount is calculated as follow;
($63000 x 2 / 100) = $1260
