Sampson Co. sold merchandise to Batson Co. on account, $26,800, terms 2/15, net 45. The cost of the goods sold is $20,100. The Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system.

Prepare the entries that Sampson Company would record for the information above.

a. Accounts Receivable-Batson Co.:

Sales:

b. Cost of Goods Sold: 20,100

Inventory: 20,100

c. Cash:

Accounts Receivable-Batson Co.:

Prepare the entries that Batson Company would record for the information above.

a. Inventory:

Accounts Payable-Sampson Co.:

b. No entry required No entry required

c. Accounts Payable-Sampson Co.:

Cash: