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., $52,200, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $29,180.
2.	Summit Company paid freight of $1,240 for delivery of merchandise sold to Beartooth Co. on August 1.
5.	Summit Company sold merchandise on account to Beartooth Co., $65,130, terms FOB shipping point, n/eom. The cost of the goods sold was $40,850.
9.	Beartooth Co. paid freight of $2,270 on August 5 purchase from Summit Company.
15.	Summit Company sold merchandise on account to Beartooth Co., $59,100, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,760, which was added to the invoice. The cost of the goods sold was $36,260.
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

Date	Account	Debit	Credit
Aug. 5

Date	Account	Debit	Credit
Aug. 9

Date	Account	Debit	Credit
Aug. 15

Date	Account	Debit	Credit
Aug. 16

Date	Account	Debit	Credit
Aug. 25

Date	Account	Debit	Credit
Aug. 31

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

Date	Account	Debit	Credit
Aug. 1

Date	Account	Debit	Credit
Aug. 1

Date	Account	Debit	Credit
Aug. 2

Date	Account	Debit	Credit
Aug. 5

Date	Account	Debit	Credit
Aug. 5

Date	Account	Debit	Credit
Aug. 15

Date	Account	Debit	Credit
Aug. 15

Date	Account	Debit	Credit
Aug. 15

Date	Account	Debit	Credit
Aug. 16

Date	Account	Debit	Credit
Aug. 25

Date	Account	Debit	Credit
Aug. 31

Answer 1