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Ww2 | Online te.. X BC OrkneYouTubeBo ward College . Contac-0 Homepage . BCOnlin

ID: 2538117 • Letter: W

Question

Ww2 | Online te.. X BC OrkneYouTubeBo ward College . Contac-0 Homepage . BCOnline (2) N HoShedules . Onin' e- Transactions for buyer and seller of of oone Co Co, On March 1, Sather Co sold merchandise to Boone Co on account, 328,400, termes 2/15, n/30 The soet ef e merchande or on March 14 Assume ail discounts are taen T9,500 The merchandse was pad Joumalize the entres tor Sather Co and Boone Co for the sale, purchase, and payment of amount due Refer to the appropniate company's Chart of Accounts for exact wording of account SDes 9

Explanation / Answer

Answer

Journal Entries in the Books of Sather Co.

In the Books of Boone Co.:

Date Particulars Debit Credit 1-Mar Accounts Receivable - Boone Co. $28400 Sales $28400 (Goods sold to Boone Co.) 1-Mar Cost of Merchandise Sold $19500 Merchandise Inventory $19500 (Transfer of cost to Cost of Merchandise sold) 14-Mar Cash $27832 Sales Discount $568 Accounts Receivable - Boone Co. $28400 (Payment terms under 2/15 that is if paid in15 days discount of 2 % will be allowed)