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(Ch 6 Appendix) The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account
(Ch 6 Appendix)
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/eom. 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 | Sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Paid the freight of $1,675 right away and in a separate journal entry, billed Beartooth for the freight. The cost of merchandise sold was $35,000. | |
16 | Beartooth Co. paid Summit Company for purchase of August 1. | |
25 | Beartooth Co. paid Summit Company on account for purchase of August 15 plus the freight. | |
31 | Beartooth Co. paid Summit Company on account for purchase of August 5. |
Journalize the entries to record the transactions for (1) Summit Company and (2) Beartooth Co., assuming that both companies use the periodic inventory system. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summit Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beartooth Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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