Question
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.,
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., $48,300, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $29,960. 2 Summit Company paid freight of $1,230 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $70,210, terms FOB shipping point, n/45. The cost of the merchandise sold was $38,490. 9 Beartooth Co. paid freight of $2,450 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $55,200, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,795, which was added to the invoice. The cost of the merchandise sold was $33,780. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise. 25 Beartooth Co. paid Summit Company on account for purchase of August 15. Required: Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
\begin{tabular}{|l|l|l} \hline 11 & Aug. 15J & Accounts Receivable-Beartooth Co. \\ \hline 12 & Sales \\ \hline 13 & Aug. 15J & Accounts Receivable-Beartooth Co. \\ \hline 14 & & Cash \\ \hline 15 & Aug. 15J & Cost of Merchandise Sold \\ \hline 16 & & Merchandise Inventory \\ \hline 17 & Aug. 16J & Cash \\ \hline 18 & & Accounts Receivable-Beartooth Co. \\ \hline 19 & Aug. 25 & Cash \\ \hline 20 & & Accounts Receivable-Beartooth Co. \\ \hline 21 & Aug. 30 & Cash \\ \hline 22 & & Accounts Receivable-Beartooth Co. \\ \hline \end{tabular} \begin{tabular}{|l|l|l} \hline 11 & Aug. 15J & Accounts Receivable-Beartooth Co. \\ \hline 12 & Sales \\ \hline 13 & Aug. 15J & Accounts Receivable-Beartooth Co. \\ \hline 14 & & Cash \\ \hline 15 & Aug. 15J & Cost of Merchandise Sold \\ \hline 16 & & Merchandise Inventory \\ \hline 17 & Aug. 16J & Cash \\ \hline 18 & & Accounts Receivable-Beartooth Co. \\ \hline 19 & Aug. 25 & Cash \\ \hline 20 & & Accounts Receivable-Beartooth Co. \\ \hline 21 & Aug. 30 & Cash \\ \hline 22 & & Accounts Receivable-Beartooth Co. \\ \hline \end{tabular}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