Instructions On March 1 Sather Co sold merchandise to Boone

Instructions On March 1, Sather Co. sold merchandise to Boone Co. on account $28,400, terms 2/15, n/30. The cost of the merchandise sold is $19,500. The merchandise was paid for on March 14. Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company\'s Chart of Accounts for exact wording of account titles.

Solution

Sather Co-( Seller) Date Accounting titles & Explanations Debit Credit 1-Mar Accounts receivable-Boone Co. 27,832 Sales (28400*98%) 27,832 Cost of Merchandise sold 19,500 Merchandise inventory 19,500 14-Mar Cash (28400*98%) 27832 Accounts receivable-Boone Co. 27,832 Boone Co Date Accounting titles & Explanations Debit Credit 1-Mar Merchandise inventory 27,832 Accounts payable-Sather co 27,832 14-Mar Accounts payable-Sather co 27,832 cash 27,832