Sales-Related and Purchase-Related Transactions for Seller andBuyer Using Perpetual Inventory System The following selectedtransactions were completed during August between Summit Companyand Beartooth Co.: Aug. 1. Summit Company sold merchandise onaccount to Beartooth Co., $49,400, terms FOB destination, 2/15,n/eom. The cost of the goods sold was $27,190. 2. Summit Companypaid freight of $1,125 for delivery of merchandise sold toBeartooth Co. on August 1. 5. Summit Company sold merchandise onaccount to Beartooth Co., $72,380, terms FOB shipping point, n/eom.The cost of the goods sold was $42,200. 9. Beartooth Co. paidfreight of $2,110 on August 5 purchase from Summit Company. 15.Summit Company sold merchandise on account to Beartooth Co.,$54,000, terms FOB shipping point, 1/10, n/30. Summit paid freightof $1,510, which was added to the invoice. The cost of the goodssold was $36,870. 16. Beartooth Co. paid Summit Company forpurchase of August 1. 25. Beartooth Co. paid Summit Company onaccount for purchase of August 15. 31. Beartooth Co. paid SummitCompany on account for purchase of August 5.
Required: 1. Journalize the August transactions for BeartoothCo. (the buyer). Date Account Debit Credit Aug. 1 InventoryAccounts Payable-Summit Company Date Account Debit Credit Aug. 5Inventory Accounts Payable-Summit Company Date Account Debit CreditAug. 9 Inventory Cash Date Account Debit Credit Aug. 15 InventoryAccounts Payable-Summit Company Date Account Debit Credit Aug. 16Accounts Payable-Summit Company Cash Date Account Debit Credit Aug.25 Accounts Payable-Summit Company Cash Date Account Debit CreditAug. 31 Accounts Payable-Summit Company Cash 2. Journalize theAugust transactions for Summit Company (the seller). Date AccountDebit Credit
