Question

On March 1, Sather Co. sold merchandise to Boone Co. on account, $28,200, terms 2/15, n/30. The cost of the merchandise sold is $17,500. The merchandise was paid for on March 14. Assume all discounts are taken. Required: Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.

Answer 1

Date	Account	Debit	Credit
	Sather Co.
March 1	Accounts Receivables	$28,200
	Sales revenue		$28,200
March 14	Cash	27636
	Discount (28200*2%)	564
	Accounts Receivables		$28,200
	Boone Co.
March 1	Merchandise Inventory	$28,200
	Accounts Payable		$28,200
March 14	Accounts Payable	$28,200
	Discount (28200*2%)		564
	Cash		27636