Question

instucions The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug 1 2 5 Summit Company sold merchandise on account to Beartooth Co., 348,000, terrs FOB destination. 2/15, n/eom. The cost of the goods sold was $28,800. Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1 Summit Company sold merchandise on account to Beartooth Co., 566,000, terms FOB shipping point n/eom. The cost of the goods sold was $40,000 9 15 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company Summit Company sold merchandise on account to Bearfooth Co., $58,700, terms FOB shipping point, n/45. Summit paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 31 Summit Company paid Beartooth Co, a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise Beartooth Co. paid Summit Company on account for purchase of August 5. Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $4,000 that was returned from the August 15 sale. The cost of the merchandise returned was $2.500 31

Answer 1

Answers Page No ① Summit company journal entries uuuuu 1 Gredit - On August 16 , Accounto preceivable - beantooth co. = $48000 (from deg :) Sales discount = @ % ¥ 48000 *960 cash = 48000 – 960 = $47040 Date Account title Debito Accounts receivable - Beartooth Co. $48000 Sales $48000 Delivery expense Cash $1150 Aug 5 Accounts receivable - Beartooth co. $66,000 Sales $ 66000 Augan | No journal entry is recorded. Aug 15 Accounts receivable - beartooth co $ 58400 $58700 Accounts receivable-beantooth Co. $1695 cash a $1675 $1150 cash

Page No ① Gredit Date Aug 16 $47040 $ 960 $48000 Aug 20 1000 Account tible - Cash Sales discount Accounts receivable - bearitooth Co. sales returns & allowances - cash : Cash Accounts receivable - Beartooth co. Sales returns & allowances $1000 Aug 31 $ 66000 466000 Aug 31. $ 4000 $4000 Accounts receivable - Beartooth coil oluer Beat10011 Compan I * Books of Beautore the company commal entries On August 15, Purchases = $58700 Foreight - . = $1615 Accounts payable - surpait company = 58100 + 1645 .. . $60375 on August 16, Accounts payable -Summit company = $48000 Purchases discount = 48000 X2%. = $960

Date Aug 9 $ 2300 Aug 15 $ 1675 Page No ③ Account title Debit I Gedit Purchases € 48000 - . Accounts payable - Summit company $48000 Aug 5 . Purchases $66000 Accounto payable - Sutomit Company $ 66000 freight in $ 2300 cash Purchases $58700 Freights in $60375 Accounts payable - Suromit company - Accounts payable - Summit company $48000 $47040 Discount of plorchases 960 . cash $(000 Purchases vieter nis Ę allowances $1000 Aug 31 Accounts payable -- Sumpsit company 4 66000 cash $66000 Aug 31 Accounts payable - summit. company $4000 Purchases ietwins & allowances . $4000 Aug 16 | Cash Aug 20