Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on
ID: 2544777 • Letter: T
Question
Transactions for Buyer and Seller
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $67,200. Shore Co. paid freight of $1,800.
Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due.
Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due.
Accounts Receivable-Blue Star Co. Sales Cost of Merchandise Sold Merchandise Inventory Common Stock Cash Cash Accounts Receivable-Blue Star Co.Explanation / Answer
IN THE BOOKS OF SHORE CO. DATE ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ Accounts receivable-Blue Star Dr. 113800 Sales revenue Account 112000 Cash Account 1800 (for sale of goods on FOB shipping. And paid freight on behalf of buyer) Cost of Merchandise Sold Dr 67200 Merchandise Inventory 67200 (for cost of goods sold ) Cash Account Dr. 113800 Accounts Receivable-Blue Star 113800 IN THE BOOKS OF BLUE STAR CO. DATE ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ Merchandise Inventory Dr. 113800 Accounts payable-Shore Co. 113800 (for goods purchased including the ffright cost) Accounts payable-Shore co. Dr. 113800 cash Account 113800 Note: As date of payment is not given, it has been assumed that the payment made after discount period.
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