Answer:
Journalize the August transactions for: 1. Summit Company
Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.
Dr Accounts receivable 48,000
Cr Sales revenue 48,000
Dr Cost of goods sold 28,800
Cr Merchandise inventory 28,800
2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
Dr Cost of goods sold 1,150
Cr Cash 1,150
5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.
Dr Accounts receivable 66,000
Cr Sales revenue 66,000
Dr Cost of goods sold 40,000
Cr Merchandise inventory 40,000
15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000.
Dr Accounts receivable 60,375
Cr Sales revenue 60,375
Dr Cost of goods sold 35,000
Cr Merchandise inventory 35,000
16 Beartooth Co. paid Summit Company for purchase of August 1.
Dr Cash 47,040
Dr Sales discounts 960
Cr Accounts receivable 48,000
25 Beartooth Co. paid Summit Company on account for purchase of August 15.
Dr Cash 59,788
Dr Sales discounts 587
Cr Accounts receivable 60,375
31 Beartooth Co. paid Summit Company on account for purchase of August 5.
Dr Cash 66,000
Cr Accounts receivable 66,000
Journalize the August transactions for: 2. Beartooth Co.
Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.
Dr Merchandise inventory 48,000
Cr Accounts payable 48,000
5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.
Dr Merchandise inventory 66,000
Cr Accounts payable 66,000
9 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
Dr Merchandise inventory 2,300
Cr Cash 2.300
15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000.
Dr Merchandise inventory 60,375
Cr Accounts payable 60,375
16 Beartooth Co. paid Summit Company for purchase of August 1.
Dr Accounts payable 48,000
Cr Cash 47,040
Cr Purchase discounts 960
25 Beartooth Co. paid Summit Company on account for purchase of August 15.
Dr Accounts payable 60,375
Cr Cash 59,788
Cr Purchase discounts 587
31 Beartooth Co. paid Summit Company on account for purchase of August 5.
Dr Accounts payable 66,000
Cr Cash 66,000
