Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system.
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system.
Aug. | 1 | Summit Company sold merchandise on account to Beartooth Co., $49,550, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $30,000. |
2 | Summit Company paid freight of $1,265 for delivery of merchandise sold to Beartooth Co. on August 1. | |
5 | Summit Company sold merchandise on account to Beartooth Co., $59,560, terms FOB shipping point, n/eom. The cost of the goods sold was $43,840. | |
9 | Beartooth Co. paid freight of $2,290 on August 5 purchase from Summit Company. | |
15 | Summit Company sold merchandise on account to Beartooth Co., $56,100, terms FOB shipping point, n/45. Summit paid freight of $1,715, which was added to the invoice. The cost of the goods sold was $36,310. | |
16 | Beartooth Co. paid Summit Company for purchase of August 1. | |
20 | Summit Company paid Beartooth Co. a cash refund of $900 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. | |
31 | Beartooth Co. paid Summit Company on account for purchase of August 5. | |
31 | Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,900 that was returned from the August 15 sale. The cost of the merchandise returned was $2,000. |
Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.
X
Chart of Accounts-Summit Company
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started