Response to the following problem:
The following selected transactions were completed during June between Snipes Company and Beejoy Company:
June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000.
8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8.
12. Beejoy Company returned $5,000 of merchandise purchased on account on June 8 from Snipes Company. The cost of the merchandise returned was $3,000.
23. Beejoy Company paid Snipes Company for purchase of June 8, less discount and less return of June 12.
24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000.
June 26. Beejoy Company paid transportation charges of $375 on June 24 purchase from Snipes Company.
30. Beejoy Company paid Snipes Company on account for purchase of June 24.
Instructions
Illustrate the effects of each of the preceding transactions on the accounts and financial statements of (1) Snipes Company and (2) Beejoy Company. Identify each transaction by date.