Problem
On July 15, 2016, the Nixon Car Company purchased 1,200 tires from the Harwell Company for $55 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, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first
-Record Purchase of Tires
-Record Paymet of July 15 Purchase
2. Prepare the journal entry to record the payment on August 15, 2016.
Record Payment of July 15 Purchase.