Question

Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $110,500, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,300. Shore paid freight of $1,900. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due.

Answer 1

Answer:

account receivable debit 110,500

sales revenue credit 110,500

freight-out debit 1,900

cash credit 1,900

COGS debit 66,300

inventory credit 66,300

Explanation:

the sales will be recorded as nominal, because there is no information about the customer taking the discount or paying within this period.

Because term are FOB shipping point, the freight corespond to shore Co