Aug. 1. Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $28,800.
2. Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
5. Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $40,000.
6. Beartooth Co. returned $10,500 of merchandise purchased on account on August 1 from Summit Company. The cost of the merchandise returned was $6,300.
9. Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
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 merchandise sold was $35,000.
16. Beartooth Co. paid Summit Company for purchase of August 1, less discount and less return of August 6.
25. Beartooth Co. paid Summit Company on account for purchase of August 15, less discount.
31. Beartooth Co. paid Summit Company on account for purchase of August 5.
Instructions
Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.
Answer:
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
1 Cost of Merchandise Sold 28,800
Merchandise Inventory 28,800
2 Delivery Expense 1,150
Cash 1,150
5 Accounts Receivable—Beartooth Co. 66,000
Sales 66,000
5 Cost of Merchandise Sold 40,000
Merchandise Inventory 40,000
6 Sales Returns and Allowances 10,500
Accounts Receivable—Beartooth Co. 10,500
6 Merchandise Inventory 6,300
Cost of Merchandise Sold 6,300
15 Accounts Receivable—Beartooth Co. 58,700
Sales 58,700
15 Accounts Receivable—Beartooth Co. 1,675
Cash 1,675
15 Cost of Merchandise Sold 35,000
Merchandise Inventory 35,000
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 Merchandise Inventory 48,000
Accounts Payable—Summit Company 48,000
5 Merchandise Inventory 66,000
Accounts Payable—Summit Company 66,000
6 Accounts Payable—Summit Company 10,500
Merchandise Inventory 10,500
9 Merchandise Inventory 2,300
Cash 2,300
15 Merchandise Inventory 60,375
Accounts Payable—Summit Company 60,375
$58,700 + $1,675 = $60,375.
16 Accounts Payable—Summit Company 37,500
Cash 36,750
Merchandise Inventory 750
25 Accounts Payable—Summit Company 60,375
Cash 59,788
Merchandise Inventory 587
31 Accounts Payable—Summit Company 66,000
Cash 66,000