Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

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., $45,300, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $26,780.

2.

Summit Company paid freight of $1,130 for delivery of merchandise sold to Beartooth Co. on August 1.

5.

Summit Company sold merchandise on account to Beartooth Co., $68,140, terms FOB shipping point, n/eom. The cost of the goods sold was $38,330.

9.

Beartooth Co. paid freight of $2,130 on August 5 purchase from Summit Company.

15.

Summit Company sold merchandise on account to Beartooth Co., $61,700, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,625, which was added to the invoice. The cost of the goods sold was $35,480.

16.

Beartooth Co. paid Summit Company for purchase of August 1.

25.

Beartooth Co. paid Summit Company on account for purchase of August 15.

31.

Beartooth Co. paid Summit Company on account for purchase of August 5.

Journal Entries Using the Periodic Inventory System

The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems uses the periodic inventory system.

Jan. 2	Purchased $17,000 of merchandise on account, FOB shipping point, terms 1/15, n/30.
Jan. 5	Paid freight of $250 on the January 2 purchase.
Jan. 6	Returned $3,600 of the merchandise purchased on January 2.
Jan. 13	Sold merchandise on account, $8,800, FOB destination, 2/10, n/30. The cost of goods sold was $6,400.
Jan. 15	Paid freight of $200 for the merchandise sold on January 13.
Jan. 17	Paid for the purchase of January 2 less the return and discount.
Jan. 23	Received payment on account for the sale of January 13 less the discount.

Journalize the entries to record the transactions of Air Systems Company. If an amount box does not require an entry, leave it blank.

Jan. 2	Purchases
	Accounts Payable
Jan. 5	Freight In
	Cash
Jan. 6	Accounts Payable
	Purchases Returns and Allowances
Jan. 13	Accounts Receivable
	Sales
Jan. 15	Delivery Expense
	Cash
Jan. 17	Accounts Payable
	Purchases Discounts
	Cash
Jan. 23	Cash
	Accounts Receivable

Journal Entries Using the Periodic Inventory System

The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems uses the periodic inventory system.

Jan. 2	Purchased $17,000 of merchandise on account, FOB shipping point, terms 1/15, n/30.
Jan. 5	Paid freight of $250 on the January 2 purchase.
Jan. 6	Returned $3,600 of the merchandise purchased on January 2.
Jan. 13	Sold merchandise on account, $8,800, FOB destination, 2/10, n/30. The cost of goods sold was $6,400.
Jan. 15	Paid freight of $200 for the merchandise sold on January 13.
Jan. 17	Paid for the purchase of January 2 less the return and discount.
Jan. 23	Received payment on account for the sale of January 13 less the discount.

Journalize the entries to record the transactions of Air Systems Company. If an amount box does not require an entry, leave it blank.

Jan. 2	Purchases
	Accounts Payable
Jan. 5	Freight In
	Cash
Jan. 6	Accounts Payable
	Purchases Returns and Allowances
Jan. 13	Accounts Receivable
	Sales
Jan. 15	Delivery Expense
	Cash
Jan. 17	Accounts Payable
	Purchases Discounts
	Cash
Jan. 23	Cash
	Accounts Receivable