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1.Harwell Company manufactures automobile tires. On July 15, 2013, 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 gross method of accounting for cash discounts.
Required:1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2013.2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2013.
Kasten, Inc. budgeted 10,000 widgets for production during 2010. Kasten has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs were provided:
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Payments to employees, $19,3008. Interest and dividends collected, $7,1009. Other operating payments, $90010. Proceeds from issuance of bonds, $11,30011. Payments of interest, $8,40012. Proceeds from sale of investments, $6,00013. Beginning cash bala..
Rubin provided an allowance of $250 to a customer because the goods were delivered after the promised date. The customer had paid cash at the time of the sale, so Rubin paid the $250 allowance in cash.
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