The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies une the net method under a perpetual inventory system Aug 1 5 9 Summit Company sold merchandise on account to Beartooth Co, $48,000, tornis FOB destination 2015. nom. The cost of the goods sold was $28.800 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1 Summit Company sold merchandise on nocount to Beartooth Co. $86,000, torms FOB shoging point neom. The cost of the goods sold was $40.000 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company 15 Summt Company told merchandise on account to Beartooth Co.$58,700, tome FOB shipping point, 45. Summit paid freight of $1,675, which was added to the invoion. The cost of the goods told was $35.000 Betooth Co. pald Summit Company for purchase of August 1, Summe Company paid Bartooth Co a cash round of $1,000 for detective merchandise purchased on August 9, Beartooth Co, kept the merchandise. Beartooth Co. pald Summit Company on account for purchase of August 31 Summit Company issued Boatooth Co, a credit memo for merchandise with an invoice amount of $4,000 that was returned from the August 15sele. The cost of the merchandise returned was $2,500, 10 20 31 Joumatice the August transactions for (1) Summit Company and (2) Bearfooth Co. Hefer to the Chart of Accounts of the appropriate company for exact wording of account les CHART OF ACCOUNTS Summit Company General Ledger ASSETS REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 110 Cash 121 Accounts Receivable-Beartooth Co. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense 142 Prepaid Insurance 180 Land 524 Depreciation Expense-Store Equipment 525 Depreciation Experise-Office Equipment 526 Salaries Expense 531 Rent Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends CHART OF ACCOUNTS Beartooth Co. General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense OLAC 740 Huppuus VEDry pod 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 211 Accounts Payable-Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends (1) Jourmalize the August transactions for Summit Company. Refer to the Churt of Accounts of the appropriate company for exact wording of account inlos PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST OF DENT CIT ASSETS LATES EQUITY 10