Question

1. 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., $46,300, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,290.
   2.	Summit Company paid freight of $1,175 for delivery of merchandise sold to Beartooth Co. on August 1.
   5.	Summit Company sold merchandise on account to Beartooth Co., $61,850, terms FOB shipping point, n/eom. The cost of the goods sold was $38,280.
   9.	Beartooth Co. paid freight of $2,080 on August 5 purchase from Summit Company.
   15.	Summit Company sold merchandise on account to Beartooth Co., $59,900, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,635, which was added to the invoice. The cost of the goods sold was $32,850.
   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		fill in the blank 2
   			fill in the blank 4

   Date	Account	Debit	Credit
   Aug. 5		fill in the blank 6
   			fill in the blank 8

   Date	Account	Debit	Credit
   Aug. 9		fill in the blank 10
   			fill in the blank 12

   Date	Account	Debit	Credit
   Aug. 15		fill in the blank 14
   			fill in the blank 16

   Date	Account	Debit	Credit
   Aug. 16		fill in the blank 18
   			fill in the blank 20

   Date	Account	Debit	Credit
   Aug. 25		fill in the blank 22
   			fill in the blank 24

   Date	Account	Debit	Credit
   Aug. 31		fill in the blank 26
   			fill in the blank 28

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

   Date	Account	Debit	Credit
   Aug. 1		fill in the blank 30
   			fill in the blank 32

   Date	Account	Debit	Credit
   Aug. 1		fill in the blank 34
   			fill in the blank 36

   Date	Account	Debit	Credit
   Aug. 2		fill in the blank 38
   			fill in the blank 40

   Date	Account	Debit	Credit
   Aug. 5		fill in the blank 42
   			fill in the blank 44

   Date	Account	Debit	Credit
   Aug. 5		fill in the blank 46
   			fill in the blank 48

   Date	Account	Debit	Credit
   Aug. 15		fill in the blank 50
   			fill in the blank 52

   Date	Account	Debit	Credit
   Aug. 15		fill in the blank 54
   			fill in the blank 56

   Date	Account	Debit	Credit
   Aug. 15		fill in the blank 58
   			fill in the blank 60

   Date	Account	Debit	Credit
   Aug. 16		fill in the blank 62
   			fill in the blank 64

   Date	Account	Debit	Credit
   Aug. 25		fill in the blank 66
   			fill in the blank 68

   Date	Account	Debit	Credit
   Aug. 31		fill in the blank 70
   			fill in the blank 72

Answer 1

1.In the Books of Bertooth Co.(the buyer)

Date	Accounts Title	Debit	Credit
01-Aug	Inventory	46300
	Accounts Payable-Summit Company		46300
05-Aug	Inventory	61850
	Accounts Payable-Summit Company		61850
Date	Account	Debit	Credit
Aug. 9	Inventory	2080
	Cash		2080
Date	Account	Debit	Credit
Aug. 15	Inventory (59900+1635)	61535
	Accounts Payable-Summit Company		61535
Date	Account	Debit	Credit
Aug. 16	Accounts Payable-Summit Company	46300
	Inventory(46300*2/100)	926
	Cash		45374
Date	Account	Debit	Credit
Aug. 25	Accounts Payable-Summit Company	59900
	Inventory(59900*1/100)	599
	Cash		59301
Date	Account	Debit	Credit
Aug. 31	Accounts Payable-Summit Company	61850
	Cash		61850
2.In the books of Summit Company (the seller).
Date	Account	Debit	Credit
Aug. 1	Accounts Receivable-Beartooth Co.	46300
	Sales		46300
Date	Account	Debit	Credit
Aug. 1	Cost of Goods Sold	27290
	Inventory		27290
Date	Account	Debit	Credit
Aug. 2	Delivery Expense	1175
	Cash		1175
Date	Account	Debit	Credit
Aug. 5	Accounts Receivable-Beartooth Co.	61850
	Sales		61850
Date	Account	Debit	Credit
Aug. 5	Cost of Goods Sold	38280
	Inventory		38280
Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.	1635
	Cash		1635
Date	Account	Debit	Credit
Aug. 15	Accounts Receivable-Beartooth Co.	59900
	Sales		59900
Date	Account	Debit	Credit
Aug. 15	Cost of Goods Sold	32850
	Inventory		32850
Date	Account	Debit	Credit
Aug. 16	Cash	46300
	Sales Discount(46300*2/100)	926
	Accounts Receivable-Beartooth Co.		45374
Date	Account	Debit	Credit
Aug. 25	Cash	59900
	Sales Discount(59900*1/100)	599
	Accounts Receivable-Beartooth Co.		59301
Date	Account	Debit	Credit
Aug. 31	Cash	61850
	Accounts Receivable-Beartooth Co.		61850

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