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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.:

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., $48,750, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $27,000. 2. Summit Company paid freight of $1,130 for delivery of merchandise sold to Beartooth Co. on August 1. 5. Summit Company sold merchandise on account to Beartooth Co., $66,610, terms FOB shipping point, n/eom. The cost of the goods sold was $41,420. 9. Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company. 15. Summit Company sold merchandise on account to Beartooth Co., $63,400, terms FOB shipping point, 1/10, n/30. Summit paid freight of $1,770, which was added to the invoice. The cost of the goods sold was $35,670. 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.

. 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.

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