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., $52,300, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,310.
2.	Summit Company paid freight of $1,155 for delivery of merchandise sold to Beartooth Co. on August 1.
5.	Summit Company sold merchandise on account to Beartooth Co., $70,030, terms FOB shipping point, n/eom. The cost of the goods sold was $43,610.
9.	Beartooth Co. paid freight of $2,350 on August 5 purchase from Summit Company.
15.	Summit Company sold merchandise on account to Beartooth Co., $63,200, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,610, which was added to the invoice. The cost of the goods sold was $32,780.
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.

Required:

1. Journalize the August transactions for Beartooth Co. (the buyer).

2. Journalize the August transactions for Summit Company (the seller).

Answer 1

1)	Beartooth co .(the buyer)
	Date	Account				Debit	Credit
	1-Aug	Merchandise inventory				51,254
		Accounts payable -summit					51,254
	5-Aug	Merchandise inventory				70,030
		Accounts payable -summit					70,030
	9-Aug	Merchandise inventory				2,350
		cash					2,350
	15-Aug	Merchandise inventory				64178
		Accounts payable -summit					64,178
	16-Aug	Accounts payable -summit				51,254
		cash					51,254
	25-Aug	Accounts payable -summit				64178
		cash					64178
	31-Aug	Accounts payable -summit				70,030
		cash					70,030
2)	Summit company(The seller)
	Date	Account				Debit	Credit
	1-Aug	Accounts receivable-Beartooth				51,254
		Sales					51,254
	1-Aug	Cost of goods sold				28,310
		Merchandise inventory					28,310
	2-Aug	Delivery expense				1,155
		cash					1,155
	5-Aug	Accounts receivable-Beartooth				70,030
		Sales					70,030
		Cost of goods sold				43610
		Merchandise inventory					43,610
	15-Aug	Accounts receivable-Beartooth				62568
		Sales					62,568
		Accounts receivable-Beartooth				1,610
		Sales					1,610
		Cost of goods sold				32780
		Merchandise inventory					32,780
	16-Aug	cash				51,254
		accounts receivable-beartooth company					51,254
	25-Aug	cash				64,178
		accounts receivable-beartooth company					64,178
	31-Aug	cash				70,030
		accounts receivable-beartooth company					70,030