Ask Question
6 April, 09:00

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
Answers (1)
  1. 6 April, 09:40
    0
    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

    Explanation:

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

    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
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers