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., $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise 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 merchandise sold was $40,000.
9. Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
Aug. 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 merchandise 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.
Instructions
Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.