Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.
The following selected transactions were completed during August between Summit Company and Beartooth Co.:
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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. |
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2. |
Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. |
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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. |
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9. |
Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company. |
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15. |
Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, n/45. Summit paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000. |
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16. |
Beartooth Co. paid Summit Company for purchase of August 1. |
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Aug. |
20. |
Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. |
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31. |
Beartooth Co. paid Summit Company on account for purchase of August 5. |
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31. |
Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $4,000 that was returned from the August 15 sale. The cost of the merchandise returned was $2,500. |
Instructions
- Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.
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