The following selected transactions were completed during August between Summit Company and 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 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/45. The cost of the merchandise sold was $40,000.9. 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 1.20. Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise.25. Beartooth Co. paid Summit Company on account for purchase of August 15.31. Summit Company granted a customer allowance (credit memo) to Beartooth Co. for $6,000 (invoiced amount) for merchandise that was returned from the August1 purchase. The cost of the merchandise returned was $3,200. Instructions Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following selected transactions were completed during August between Summit Company and 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 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/45. The cost of the merchandise sold was $40,000.
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.
20. Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise.
25. Beartooth Co. paid Summit Company on account for purchase of August 15.
31. Summit Company granted a customer allowance (credit memo) to Beartooth Co. for $6,000 (invoiced amount) for merchandise that was returned from the August
1 purchase. The cost of the merchandise returned was $3,200.

Instructions

Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.

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