Instructions
Journalize the entries to record the transactions for (1) Summit Company and (2) Beartooth Co., assuming that both companies use the periodic inventory system.
Answer:
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
2 Delivery Expense 1,150
Cash 1,150
5 Accounts Receivable—Beartooth Co. 66,000
Sales 66,000
6 Sales Returns and Allowances 10,500
Accounts Receivable—Beartooth Co. 10,500
15 Accounts Receivable—Beartooth Co. 58,700
Sales 58,700
15 Accounts Receivable—Beartooth Co. 1,675
Cash 1,675
16 Cash 36,750
Sales Discounts 750
Accounts Receivable—Beartooth Co. 37,500
25 Cash 59,788
Sales Discounts 587
Accounts Receivable—Beartooth Co. 60,375
31 Cash 66,000
Accounts Receivable—Beartooth Co. 66,000
2.
Aug. 1 Purchases 48,000
Accounts Payable—Summit Company 48,000
5 Purchases 66,000
Accounts Payable—Summit Company 66,000
6 Accounts Payable—Summit Company 10,500
Purchases Returns and Allowances 10,500
9 Freight In 2,300
Cash 2,300
15 Purchases 58,700
Freight In 1,675
Accounts Payable—Summit Company 60,375
16 Accounts Payable—Summit Company 37,500
Cash 36,750
Purchases Discounts 750
25 Accounts Payable—Summit Company 60,375
Cash 59,788
Purchases Discounts 587
31 Accounts Payable—Summit Company 66,000
Cash 66,000