Question

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, 1/10, n/30. Summit Company 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.
	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.

Answer 1

In the books of Summit Company

Journal

Date                           Particulars                                       Dr$                             Cr$

Aug 1                           Beartooth Co. 48,000

                                    Sales 48,000

Aug 2                           Freight Expense                                  1,150

                                    Cash                                                                                        1,150

Aug 5                           Beartooth Co.                                      66,000

                                    Sales                                                                                        66,000

Aug 5                           Cost of Goods Sold                              40,000

                                    Inventory                                                                                 40,000

Aug 9                           Freight Expense                                  2,300

                                    Cash                                                                                        2,300

Aug 15                         Beartooth Co.                                      58,700

                                    Sales                                                                                        58,700

Aug 15                         Beartooth Co.                                      1,675

                                    Cash                                                                                        1,675

Aug 15                         Cost of Goods Sold                              35,000

                                    Inventory                                                                                 35,000