Question

Aug.	1	Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods 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 goods sold was $40,000.
	9	Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
	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 goods 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.

Answer 1

Date		Debit	Credit
1-aug	Accounts receivable	48000
	Sale		48000
1	Cost of goods sold	28800
	Inventory		28800
2	Freight expense	1150
	Cash		1150
5	Accounts receivable	66000
	Sale		66000
5	Cost of goods sold	40000
	Inventory		40000
9	No journal entry
15	Accounts receivable	60375
	Sale		58700
	Cash		1675
15	Cost of goods sold	35000
	Inventory		35000
16	Cash	48000
	Accounts receivable		48000
25	Cash account	59788
	Cash discount (58700*1%)	587
	Account receivable		60375
31	Cash	66000
	Account receivable		66000