answer in text form please (without image), Note: .Every entry should have narration please ### Transaction Details Between Summit Company and Beartooth Co. (August)#### August 1- **Transaction:** Summit Company sold merchandise on account to Beartooth Co.- **Amount:** $52,150- **Terms:** FOB destination, n/15- **Cost of Goods Sold:** $25,940#### August 2- **Transaction:** Summit Company paid freight for delivery of merchandise sold to Beartooth Co. on August 1.- **Amount:** $1,325#### August 5- **Transaction:** Summit Company sold merchandise on account to Beartooth Co.- **Amount:** $60,090- **Terms:** FOB shipping point, n/eom- **Cost of Goods Sold:** $36,900#### August 9- **Transaction:** Beartooth Co. paid freight for purchase on August 5 from Summit Company.- **Amount:** $2,140#### August 15- **Transaction:** Summit Company sold merchandise on account to Beartooth Co.- **Amount:** $62,600- **Terms:** FOB shipping point, n/45- **Freight Paid by Summit:** $1,515 (added to invoice)- **Cost of Goods Sold:** $32,600#### August 16- **Transaction:** Beartooth Co. paid Summit Company for purchase on August 1.#### August 20- **Transaction:** Summit Company paid Beartooth Co. a cash refund for defective merchandise purchased on August 1.- **Refund Amount:** $1,000- **Note:** Beartooth Co. kept the merchandise.#### August 31- **Transaction 1:** Beartooth Co. paid Summit Company on account for purchase on August 5. - **Transaction 2:** Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,800 that was returned from the August 15 sale.- **Cost of Merchandise Returned:** $2,200### TaskJournalize the August transactions for:1. Summit Company2. Beartooth Co.

Name: answer in text form please (without image), Note: .Every entry shoul
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: answer in text form please (without image), Note: .Every entry should have narration please ### Transaction Details Between Summit Company and Beartooth Co. (August)#### August 1- **Transaction:** Summit Company sold merchandise on account to Beart

Journal entries are the record of the transactions entered into by the organization during the financial year. These transactions are recorded chronologically.Once they are recorded in the form of a journal they are posted to the T-Accounts. The Ending balance of T-Accounts is used to prepare trial balance..Summit CompanyJournal EntriesDateAccounts Title Debit Credit Aug 1Accounts Receivable $ 52,150Sales Revenue $ 52,150(To record sales revenue earned on account)Aug 1Cost of goods sold $ 25,940Inventory $ 25,940(To record cost of goods sold incurred)Aug 2Freight Out $ 1,235Cash $ 1,235(To record freight charges incurred)Aug 5Accounts Receivable $ 60,090Sales Revenue $ 60,090(To record sales revenue earned on account)Aug 5Cost of goods sold $ 36,900Inventory $ 36,900(To record cost of goods sold incurred)Aug 9No Entry requiredAug 15Accounts Receivable $ 64,115Sales Revenue $ 62,600Cash $ 1,515(To record sales revenue earned on account)Aug 15Cost of goods sold $ 32,600Inventory $ 32,600(To record cost of goods sold incurred)Aug 16Cash $ 52,150Accounts Receivable $ 52,150(To record amount received on account)Aug 20Sales Return & Allowance $ 1,000Cash $ 1,000(To record Cash Refunded for Defective Merchandise)Aug 31Cash $ 60,090Accounts Receivable $ 60,090(To record amount received on account)Aug 31Sales Return & Allowance $ 3,800Accounts Receivable $ 3,800(To record defective merchandise returned on account)Aug 31Inventory $ 2,200Cost of Goods Sold $ 2,200(To record Cost of Good Sold Reversed)2a. Journal Entries are recorded in the books of Beartooth Company -Beartooth CompanyJournal EntriesDateAccounts Title Debit Credit Aug 1Inventory $ 52,150Accounts Payable $ 52,150(To record inventory purchased on account)Aug 5Inventory $ 60,090Accounts Payable $ 60,090(To record inventory purchased on account)Aug 9Inventory $ 2,140Cash $ 2,140(To record freight charges paid)Aug 15Inventory $ 64,115Accounts Payable $ 64,115(To record inventory purchased on account)Aug 16Accounts Payable $ 52,150Cash $ 52,150(To record payment made on account)Aug 20Cash $ 1,000Inventory $ 1,000(To record amount received for defective inventory)Aug 31Accounts Payable $ 60,090Cash $ 60,090(To record payment made on account)Aug 31Accounts Payable $ 3,800Inventory $ 3,800(To record Purchase Returned on Account)