Question

Transactions for Buyer and Seller Grayson Co. sold merchandise to Vargas Co. on account, $152,900, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $91,740. Grayson Co. paid freight of $2,900. Assume that all discounts are taken. Journalize Grayson Co.'s entries for the (a) sale, (b) purchase, and (c) payment of amount due. If an amount box does not require an entry, leave it blank. (a) Accounts Receivable-Vargas Co. 149,842 ✓ ✓ Sales 149,842 ✓ Cost of Merchandise Sold 91,740 ✓ ✓ Merchandise Inventory 91,740 (b) Accounts Receivable-Vargas Co. 2,900 Cash 2,900 (c) Cash 149,842 х ✓ Accounts Receivable-Vargas Co. 149,842 х Journalize Vargas Co.'s entries for (a) sale, and (b) payment of amount due. If an amount box does not require an entry, leave it blank. (a) Merchandise Inventory 152,742 ✓ Accounts Payable-Grayson Co. 152,742 152,742 ✓ (b) Accounts Payable-Grayson Co. Cash 152,742 ✓

Please solve for C.

ALSO, **Please show work for how answer for A and B were solved. where did $152,742 come from? **

Answer 1

Solution:

a.	Accounts receivable - vargas co. a/c Dr	149842
	To sales a/c 152900 - (152900*2%)		149842
	Cost of merchandise sold a/c Dr	91,740
	To merchandise inventory a/c		91,740
b	Accounts receivable - vargas co. a/c Dr	2,900
	To cash a/c		2,900
c.	Cash a/c Dr (149842 + 2900)	1,52,742
	To Accounts receivable - vargas co. a/c		1,52,742

a.	Merchandise inventory a/c Dr	1,52,742
	To accounts payable - grayson co a/c		1,52,742
b.	Accounts payable - grayson co. a/c Dr	1,52,742
	To cash a/c		1,52,742