Question

Instructions The following selected transactions were completed during August between Summit Company and Beartooth Co.: 1 Summit Company sold merchandise on account to Beartooth Co., $52,150, terms Aug. FOB destination, 2/15, nleom. The cost of the goods sald was $25,940. 2 Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping.point, n/eom. The cost of the goods sold was $36,900. 9 Beartooth Co. paid freight of $2,140 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $62,600, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,515, which was added to the EOB shipping point, n/eom. The cost of the goods sold was $36,900. 9 Beartooth Co. paid freight of $2,140 on August 5 purchase from Summit Company 15 Summit Company sold merchandise on account to Beartooth Co., $82,600, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,515, which was added to the invoice. The cost of the goods sold was $32,600. 16 Beartooth Co. paid Summit Company for purchase of August 1. 25 Beartooth Co. paid Summit Company on account for purchase of August 15. 31 Beartooth Co. paid Summit Company on account for purchase of August 5 ournalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of ccounts of the appropriate company for exact wording of account titles.

Answer 1

(1)

Date	Account Titles	Debit	Credit
Aug 1	Accounts Receivable—Beartooth Co.	$52150
	Sales		$52150
Aug 1	Cost of Merchandise Sold	$25940
	Merchandise Inventory		$25940
Aug 2	Delivery Expense	$1235
	Cash		$1235
Aug 5	Accounts Receivable—Beartooth Co.	$60090
	Sales		$60090
Aug 5	Cost of Merchandise Sold	$36900
	Merchandise Inventory		$36900
Aug 15	Accounts Receivable—Beartooth Co.	$62600
	Sales		$62600
Aug 15	Accounts Receivable—Beartooth Co.	$1515
	Cash		$1515
Aug 15	Cost of Merchandise Sold	$32600
	Merchandise Inventory		$32600
Aug 16	Cash	$51107
	Sales Discount ($52150 * 2%)	$1043
	Accounts Receivable—Beartooth Co.		$52150
Aug 25	Cash	$63489
	Sales Discount ($62600 * 3%)	$626
	Accounts Receivable—Beartooth Co.		$64115
Aug 31	Cash	$60090
	Accounts Receivable—Beartooth Co.		$60090

(2)

Date	Account Titles	Debit	Credit
Aug 1	Merchandise Inventory	$52150
	Accounts Payable—Summit Company		$52150
Aug 5	Merchandise Inventory	$60090
	Accounts Payable—Summit Company		$60090
Aug 9	Merchandise Inventory	$2140
	Cash		$2140
Aug 15	Merchandise Inventory	$64115
	Accounts Payable—Summit Company ($62600 + $1515)		$64115
Aug 16	Accounts Payable—Summit Company	$52150
	Cash		$51107
	Merchandise Inventory		$1043
Aug 25	Accounts Payable—Summit Company	$64115
	Cash		$63489
	Merchandise Inventory		$626
Aug 31	Accounts Payable—Summit Company	$60090
	Cash		$60090