The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800. 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000. 9 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000. 16 Beartooth Co. paid Summit Company for purchase of August 1. 25 Beartooth Co. paid Summit Company on account for purchase of August 15. 31 Beartooth Co. paid Summit Company on account for purchase of August 5. Required:Journalize the August transactions for: 1. Summit Company 2. Beartooth Co.

Journalize the August transactions for: 1. Summit Company

Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.

Dr Accounts receivable 48,000

    Cr Sales revenue 48,000

Dr Cost of goods sold 28,800

    Cr Merchandise inventory 28,800

2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.

Dr Cost of goods sold 1,150

    Cr Cash 1,150

5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.

Dr Accounts receivable 66,000

    Cr Sales revenue 66,000

Dr Cost of goods sold 40,000

    Cr Merchandise inventory 40,000

15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000.

Dr Accounts receivable 60,375

    Cr Sales revenue 60,375

Dr Cost of goods sold 35,000

    Cr Merchandise inventory 35,000

16 Beartooth Co. paid Summit Company for purchase of August 1.

Dr Cash 47,040

Dr Sales discounts 960

    Cr Accounts receivable 48,000

25 Beartooth Co. paid Summit Company on account for purchase of August 15.

Dr Cash 59,788

Dr Sales discounts 587

    Cr Accounts receivable 60,375

31 Beartooth Co. paid Summit Company on account for purchase of August 5.

Dr Cash 66,000

    Cr Accounts receivable 66,000

Journalize the August transactions for: 2. Beartooth Co.

Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.

Dr Merchandise inventory 48,000

    Cr Accounts payable 48,000

5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.

Dr Merchandise inventory 66,000

    Cr Accounts payable 66,000

9 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.

Dr Merchandise inventory 2,300

    Cr Cash 2.300

15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000.

Dr Merchandise inventory 60,375

    Cr Accounts payable 60,375

16 Beartooth Co. paid Summit Company for purchase of August 1.

Dr Accounts payable 48,000

    Cr Cash 47,040

    Cr Purchase discounts 960

25 Beartooth Co. paid Summit Company on account for purchase of August 15.

Dr Accounts payable 60,375

    Cr Cash 59,788

    Cr Purchase discounts 587

31 Beartooth Co. paid Summit Company on account for purchase of August 5.

Dr Accounts payable 66,000

    Cr Cash 66,000

answer; situational irony;

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.