Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. 1. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system.
Accounts Receivable-Blue Star Co.
Sales
Cost of Merchandise Sold
Merchandise Inventory
Common Stock
Cash
2. Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due.
Merchandise Inventory
Accounts Payable-Shore Co.
Cash