Exercise $7-6($Algo$)$ Cash discounts; the gross method $[$LO$7-3]$

Harwell Company manufactures automobile tires. On July $15,2024,$ the company sold $1,800$ tires to the Nixon Car Company for $$40$ each. The terms of the sale were $\frac{2}{20},\frac{n}{30}.$ Harwell uses the gross method of accounting for cash discounts.

Required:

Prepare the journal entries to record the sale on July $15($ignore cost of goods$)$ and collection on July $23,2024.$

Prepare the journal entries to record the sale on July $15($ignore cost of goods$)$ and collection on August $15,2024.$

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare the journal entries to record the sale on July $15($ignore cost of goods$)$ and collection on July $23,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet