Instructions The following selected transactions were completed during August be

Question

Instructions The following selected transactions were completed during August berween Summit Company and Beatooth Co. (2) Jourmaize the August transactions for Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wardling of account tities. Aug. 1 Summit Company sold merchandise on account to Beartooth Co. S49,550, terms FOB destination, 2115, nveom. The cost of the.goods sold was $30,000. Summit Company paid freight of $1,285 for delivery of merchandise sold to Beartooth Co. on August1 Summit Company sold merchandise on account to Beartooth Co. S59,560, terms FOB shipping point, nveom. The cost of the goods Al transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. 2 PAGE 15 Score: 87/176 ACCOUNTING EQUATION DEBIT CREDIT ASSETS LIABILIMESQUITY 5 JOURNAL 9 Beartooth Co. paid freight of S2,290 on August 5 purchase from Summit Company, Summilt Company sold merchandise on account to Beartooth Co. $56,100, terms FOB shipping point, 1/10, nv30. Summit Company paid freight af $1,715, which was added to the invoice. The cost of the goods sold was $38,310. Beartooth Co. paid Summit Company for purchase of August 1. Beartooth Co. paid Summit Company on account for purchase of August 15. Beartooth Co. paid Summit Company on account for purchase of August 5 15 16 2s 31 Journalize me August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate 12 company for exact wovding of account tnes. Chart of Accounts-Summit Company 110 Cash 121 Accounts Receivable-Beartooth Co. 125 Notes Recavable 130 Inventory 131 Estimated Returns Inventory 140 Ofice Supplies 141 Store Supplies 142 Prepald insurance 180 Land 192 Store Equipment 410 Sales 610 Interest Revenue $10 Cost of Goods Sold 521 Delivery Expense 22 Advertising Expense

Explanation / Answer

Jounal entries ACCOUNTING EQUATION Date Account's tittle POST REF Debit $ Credit $ ASSETS LIABILITIES EQUITY 1-Aug Accounts receivable - Beartooth Company ( $ 49,550 x 98% )               48,559                48,559 Sales                   48,559            48,559 ( Sales on account to Beartooth company for a term 2/15,n/eom ) 1-Aug Cost of goods sold               30,000           (30,000) Inventory                   30,000              (30,000) 2-Aug Delivery expenses                 1,265             (1,265) Cash                     1,265                (1,265) 5-Aug Accounts receivable - Beartooth Company               59,560                59,560 Sales                   59,560            59,560 ( Sales on account to Beartooth company for a term,n/eom ) 5-Aug Cost of goods sold               43,840              (43,840) Inventory                   43,840           (43,840) 9-Aug No entry is required in the books of summit company for delivery charges paid by Beartooth company. 15-Aug Accounts receivable - Beartooth Company ( $ 56,100 x 99% )               55,539                55,539 Sales                   55,539            55,539 ( Sales on account to Beartooth company for a term 1/10,n/30 ) 15-Aug Delivery expenses                 1,715             (1,715) Cash                     1,715                (1,715) 15-Aug Cost of goods sold               36,310              (36,310) Inventory                   36,310           (36,310) 16-Aug Cash               48,559                48,559 Accounts receivable - Beartooth Company                   48,559              (48,559) 25-Aug Cash               55,539                55,539 Accounts receivable - Beartooth Company                   55,539              (55,539) 31-Aug Cash               59,560                59,560 Accounts receivable - Beartooth Company                   59,560              (59,560) TOTAL             440,446                 440,446                50,528                        -              50,528

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