Journalize the following entries on the books of the borrowe

Journalize the following entries on the books of the borrower and creditor. Jun. 1 Regis Co. purchased merchandise on account from Winthrop Co., $60,000, terms n/30.

Solution

Books of Regis Co. Date Account title Debit Credit Jun.1 Inventory 60000 Accounts payable 60000 (To record purchase of goods from Winthrop Co.) Books of Winthrop Co. Date Account title Debit Credit Jun.1 Accounts Receivable 60000 Sales 60000 (To record sale of goods to Regis. Co..)