Answer:
Explanation:
The journal entries are shown below:
In the books of Sampson Company
a. Accounts receivable A/c Dr $46,000
To Sales revenue $46,000
(Being merchandise is sold on a credit basis)
b. Cost of goods sold A/c Dr $38,500
To Merchandise inventory A/c $38,500
(Being cost of merchandise is recorded)
c. Cash A/c Dr $45,080
Sales discount A/c $920 ($46000 x 2%)
To Accounts receivable A/c $46,000
(Being cash is received is recorded)
In the books of Batson Company
a. Merchandise inventory A/c $46,000
To Accounts payable A/c $46,000
(Being merchandise is purchased on credit basis)
b. No journal entry is required
c. Accounts payable A/c Dr $46,000
To Merchandise inventory A/c $920 ($46000 x 2%)
To Cash A/c $45,080
(Being cash is paid is recorded)
