Harwell Company manufactures automobile tires

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Harwell Company manufactures automobile tires. On July 15, 2015, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, 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 of Aug 15, 2015.

2. Prepare the journal entries to record the payment if it were instead make on July 23, 2015.

3. Assuming Harwell uses the net method of accounting for cash discounts, repeat requirements 1 and 2.