Question

The following selected transactions were completed during August between Summit Company and Beartooth Co.:

Aug.	1	Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.
	2	Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
	5	Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.
	9	Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
	15	Summit Company sold merchandise on account to Beartooth 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	Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise.
	31	Beartooth Co. paid Summit Company on account for purchase of August 5.
	31	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. (1) Journalize the August transactions for Summit Company. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 10 JOURNAL ACCOUNTING EQUATION Score: 159/326 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (2) Journalize the August transactions for Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 15 JOURNAL ACCOUNTING EQUATION Score: 6/201 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Answer 1

	Summit Company					Beartooth Co
Date	Account Names	Debit	Credit		Date	Account Names	Debit	Credit		Calculation
1-Aug	Accounts Receivable	48,000			1-Aug	Inventory	48,000
	Sales		48,000			Accounts Payable		48,000
1-Aug	Cost of goods sold	28,800
	Inventory		28,800
2-Aug	Freight out	1,150
	Cash		1,150
5-Aug	Accounts Receivable	66,000			5-Aug	Inventory	66,000
	Sales		66,000			Accounts Payable		66,000
5-Aug	Cost of goods sold	40,000
	Inventory		40,000
9-Aug					9-Aug	Inventory	2,300
						Cash		2,300
15-Aug	Accounts Receivable	60,375			15-Aug	Inventory	60,375
	Sales		58,700			Accounts Payable		60,375
	Cash		1,675
15-Aug	Cost of goods sold	35,000
	Inventory		35,000
16-Aug	Cash	47,040			16-Aug	Accounts Payable	48,000
	Sales Discount	960				Inventory		960		=48,000*2%
	Accounts Receivable		48,000			Cash		47,040
20-Aug	Sales Returns & Allowances	1,000			20-Aug	Cash	1,000
	Cash		1,000			Inventory		1,000
31-Aug	Cash	66,000			31-Aug	Accounts Payable	66,000
	Accounts Receivable		66,000			Cash		66,000
31-Aug	Sales Returns & Allowances	4,000			31-Aug	Accounts Payable	4,000
	Accounts Receivable		4,000			Inventory		4,000
31-Aug	Inventory	2,500
	Cost of goods sold		2,500