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On March 1, sather co. Sold merchandise to Boone Co. on account for $30,100 terms 2/15 n/30 the cost of the merchandise sold is $19,600. The merchandise was paid for on March 14. Assume all discounts are taken.

Journalize the entries for sather co. And Boone. Co. For the sale, purchase, and payment of amount due.

1 Answer

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Answer:

1.March 1

Dr Accounts Receivable-Boone Co 29,498

Cr Sales 29,498

2.March 1

Dr Cost of Merchandise Sold 19 600

Cr Merchandise Inventory 19,600

3.March 14

Dr Cash 29,498

Cr Accounts Receivable-Boone Co.29,298

Step-by-step explanation:

Preparation of the Journal entries for sather co. And Boone. Co. For the sale, purchase, and payment of amount due.

Step-by-step explanation:

1. Preparation of the Journal entry to record sales .

Since On March 1, sather co tend to Sold merchandise to Boone Co. on account for $30,100 terms 2/15 n/30 the transaction will be recorded as :

March 1

Dr Accounts Receivable-Boone Co 29,498

2%×30,100=602

30,100-602= 29,498

Cr Sales 29,498

2. Journal entry to record purchase

Since tthe cost of the merchandise sold was $19,600 the transaction Wii be recorded as:

March 1

Dr Cost of Merchandise Sold 19 600

Cr Merchandise Inventory 19,600

3. Preparation of the Journal entry to record payment of amount due.

.Since we were told to record the payment about intrest due the Journal entry Wii be recorded as;

March 14

Dr Cash 29,498

Cr Accounts Receivable-Boone Co.29,298

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