Instructions

Shore Co$.$ sold merchandise to Blue Star Co$.$ on account, $$112,000,$ terms FOB shipping.point, $\frac{2}{10},\frac{n}{30}.$ The cost of the goods sold is $$67,200.$ Shore Co$.$ paid freight of $$1,800.$

Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. Refer to the appropriate company's Chart of Accounts for exact wording of account titles.