The following selected transactions were completed during August between Summit Co. and Beartooth Co.: Aug. 1 Summit Co. sold me
rchandise on account to Beartooth Co., $43,500, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $29,330. 2 Summit Co. paid freight of $1,110 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Co. sold merchandise on account to Beartooth Co., $69,400, terms FOB shipping point, n/eom. The cost of the merchandise sold was $42,440. 9 Beartooth Co. paid freight of $2,310 on August 5 purchase from Summit Company. 15 Summit Co. sold merchandise on account to Beartooth Co., $61,000, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,555, which was added to the invoice. The cost of the merchandise sold was $37,780. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise. 25 Beartooth Co. paid Summit Company on account for purchase of August 15. 31 Summit Company granted a customer allowance (credit memo) to Beartooth Co. for $6,000 (invoiced amount) for merchandise that was returned from the August 1 purchase. The cost of the merchandise returned was $3,200. Required: Journalize the August transactions for (1) Summit Co. and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.
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Answer:
$800 Debit.
Step by step explanation:
We have been given that the accounts receivable account has a total debit postings of 1900 and credit postings of 1100.
Since debit postings are more than credit postings, so the balance of the account will be debit.
Let us find how many debit postings will be in the balance of account by subtracting 1100 from 1900.
Therefore, the balance of the account is a $800 debit.