Question

Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

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., $50,500, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,450.
2.	Summit Company paid freight of $1,165 for delivery of merchandise sold to Beartooth Co. on August 1.
5.	Summit Company sold merchandise on account to Beartooth Co., $69,710, terms FOB shipping point, n/eom. The cost of the goods sold was $43,240.
9.	Beartooth Co. paid freight of $2,250 on August 5 purchase from Summit Company.
15.	Summit Company sold merchandise on account to Beartooth Co., $53,700, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,505, which was added to the invoice. The cost of the goods sold was $36,560.
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).

Date	Account	Debit	Credit
Aug. 1	Inventory
	Accounts Payable-Summit Company

Date	Account	Debit	Credit
Aug. 5	Inventory
	Accounts Payable-Summit Company

Date	Account	Debit	Credit
Aug. 9	Inventory
	Cash

Date	Account	Debit	Credit
Aug. 15	Inventory
	Accounts Payable-Summit Company

Date	Account	Debit	Credit
Aug. 16	Accounts Payable-Summit Company
	Cash

Date	Account	Debit	Credit
Aug. 25	Accounts Payable-Summit Company
	Cash

Date	Account	Debit	Credit
Aug. 31	Accounts Payable-Summit Company
	Cash

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

Date	Account	Debit	Credit
Aug. 1	Accounts Receivable-Beartooth Co.
	Sales

Date	Account	Debit	Credit
Aug. 1	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Aug. 2	Delivery Expense
	Cash

Date	Account	Debit	Credit
Aug. 5	Accounts Receivable-Beartooth Co.
	Sales

Date	Account	Debit	Credit
Aug. 5	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.
	Sales

Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.
	Cash

Date	Account	Debit	Credit
Aug. 15	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Aug. 16	Cash
	Accounts Receivable-Beartooth Co.

Date	Account	Debit	Credit
Aug. 25	Cash
	Accounts Receivable-Beartooth Co.

Date	Account	Debit	Credit
Aug. 31	Cash
	Accounts Receivable-Beartooth Co.

Answer 1

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

Date	Account	Debit	Credit
Aug. 1	Inventory	$         50,500
	Accounts Payable-Summit Company		$              50,500
Date	Account	Debit	Credit
Aug. 5	Inventory	$         69,710
	Accounts Payable-Summit Company		$              69,710
Date	Account	Debit	Credit
Aug. 9	Inventory	$           2,250
	Cash		$                2,250
Date	Account	Debit	Credit
Aug. 15	Inventory (53700+1,505)	$         55,205
	Accounts Payable-Summit Company		$              55,205
Date	Account	Debit	Credit
Aug. 16	Accounts Payable-Summit Company	$         50,500
	Inventory (50500*2%)		$                1,010
	Cash		$              49,490
Date	Account	Debit	Credit
Aug. 25	Accounts Payable-Summit Company	$         55,205
	Inventory (55205*1%)		$                   552
	Cash		$              54,653
Date	Account	Debit	Credit
Aug. 31	Accounts Payable-Summit Company	$         69,710
	Cash		$              69,710

Journalize the August transactions for Summit Company (the seller)​​​​​​​

Date	Account	Debit	Credit
Aug. 1	Accounts Receivable-Beartooth Co.	$         50,500
	Sales		$              50,500
Date	Account	Debit	Credit
Aug. 1	Cost of Goods Sold	$         27,450
	Inventory		$              27,450
Date	Account	Debit	Credit
Aug. 2	Delivery Expense	$           1,165
	Cash		$                1,165
Date	Account	Debit	Credit
Aug. 5	Accounts Receivable-Beartooth Co.	$         69,710
	Sales		$              69,710
Date	Account	Debit	Credit
Aug. 5	Cost of Goods Sold	$         43,240
	Inventory		$              43,240
Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.	$         53,700
	Sales		$              53,700
Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.	$           1,505
	Cash		$                1,505
Date	Account	Debit	Credit
Aug. 15	Cost of Goods Sold	$         36,560
	Inventory		$              36,560
Date	Account	Debit	Credit
Aug. 16	Cash	$         49,490
	Sales Discounts (50500*2%)	$           1,010
	Accounts Receivable-Beartooth Co.		$              50,500
Date	Account	Debit	Credit
Aug. 25	Cash ((53700+1505)-552)	$         54,653
	Sales Discounts ((53700+1505)*1%)	$              552
	Accounts Receivable-Beartooth Co.		$              55,205
Date	Account	Debit	Credit
Aug. 31	Cash	$         69,710
	Accounts Receivable-Beartooth Co.		$              69,710