Transactions for Buyer and Seller

Grayson Co. sold merchandise to Rather Co. on account, $7,900, terms 2/15, n/30. The cost of merchandise sold is $4,740. Assume all discounts are taken.

Journalize Grayson Co.'s entries for (a) the sale on account and (b) the collection of the amount due.

(a)
(b)

Journalize Rather Co.'s entries for (a) the purchase of merchandise on account and (b) the payment of the amount due.

(a)
(b)

Options:

• Accounts Payable-Grayson Co.
• Accounts Receivable-Grayson Co.
• Cost of Merchandise Sold
• Merchandise Inventory
• Sales
• Sales Discounts
• Cash