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., $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $28,800.
	2	Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
	5	Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/45. The cost of the merchandise sold was $40,000.
	9	Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
	15	Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the merchandise sold was $35,000.
	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.

Chart of Accounts-Summit Company

CHART OF ACCOUNTS

Summit Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Beartooth Co.
125	Notes Receivable
130	Merchandise 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

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise 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
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Chart of Accounts-Beartooth Co.

CHART OF ACCOUNTS

Beartooth Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise 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

	LIABILITIES
211	Accounts Payable-Summit Company
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

(1) Journalize the August transactions for Summit Company. 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.

(2) Journalize the August transactions for 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.

DATE POST. REF. CREDIT ASSETS LIABILITIES EQUITY DEBIT 48,000.00 1 1 2 43,000.00 1 3 28,800.00 DESCRIPTION Aug. 1Cost of Merchandise Sold Merchandise Inventory Aug. 2 Delivery Expense Cash Aug. 5 Cost of Merchandise Sold Merchandise Inventory Aug. 15 Accounts Receivable-Beartooth Co. Cash 28,800.00 5 40,000.00 6 40,000.00 7 60,375.00 1 8 1,675.00 9 Sales 58,700.00 30 20 1 Aug. 16 Cash Miscellaneous Expense 47,040.00 960.00 Accounts Receivable-Beartooth Co. 43,000.00 1,800.00 : 4 Aug. 20 Miscellaneous Expense Cash 1,800.00 15 Aug 25 Cash 59,788.00 587.00 Miscellaneous Expense Accounts Receivable-Beartooth 60,375.00 1 is 48,000.00 1 Aug. 1 Accounts Receivable-Beartooth Co. Sales Aug. 5 Accounts Receivable-Beartooth Co. 48,000.00 20 66,000.00 21 Sales 66,000.00 22 Cash 1,800.00 1 PAGE 15 JOURNAL Score: 149/176 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 4,800.00 2 4,800.00 1 3 66,000.00 Aug. 1 Merchandise Inventory Accounts Payable-Summit Company Aug. 5 Merchandise Inventory Accounts Payable-Summit Company Aug. 9 Merchandise Inventory Cash 66,000.00 5 2,300.00 6 2,300.00 1 7 60,375.00 8 60,375.00 1 Aug. 15 Merchandise Inventory Accounts Payable-Summit Company Aug. 16 Accounts Payable-Summit Company Miscellaneous Expense 9 48,000.00 1 10 960.00 11 Cash 47,040.00 12 Aug. 20 Cash 1,800.00 1 13 1,800.00 + Merchandise Inventory Aug. 25 Accounts Payable-Summit Company 14 60,375.00 1