Garth Company sold goods on account to Kyle Enterprises with terms of 2/10, n/30. The goods had a cost of $600 and a selling price of $1,100. Both Garth and Kyle use a perpetual inventory system.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1.Record the sale on the books of Garth.

Account Titles and Explanation

Debit

Credit

(To record credit sale.)

(To record cost of good sold.)

2.Record the purchase on the books of Kyle.

Account Titles and Explanation

Debit

Credit