Answer:
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
