Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45 . The cost of the merchandise sold is $38,500. Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson would record for the above. Assume both Sampson and Batson use a perpetual inventory system. During August, the first month of the fiscal year, sales totaled $900,000 and the cost of merchandise available for sale totaled $650,000. Estimate the cost of the merchandise inventory as of August 31 , based on an estimated gross profit rate of 50%