Shore Co sold merchandise to Blue Sar Co. onaccount, $112,000, terms FOBhippinq

Question

Shore Co sold merchandise to Blue Sar Co. onaccount, $112,000, terms FOBhippinq pcirt 210, n30. The cost ofthe qoods sold is $87,200. Shore Co pad DEERPTION reight ofs1.800 oumenze me entres for Shore and Blve Star forthe sale, purchase, and payment ofamount due. Referto me appropnere comoanys Chat ofAccounts for exact woruing of account iee Shore Co General L edgar ASSETS REVENUE Journal-Blue Star Co. 10 Cash 121 Accounts 125 Notes RBcevable 130 nventory 140 Offce Supplies 141 Stora Supplias 142 Prepaid Insurance 100 Land 192 Store Equipment 93 ACCumulated Deprcoaicn Store Equipment 94 Omce Equiomen Star Co. 610 Rent Revenue EXPEN SES 501 Cost of Goods Sold 521 Delvery Expenac 522 Advertising Expense 524 DepracianonExpanse-Store Equipment 531 Rent Depense 533 Insuranca Expanse 534 Stcre Supplies Expense 535 Otce Supplies Expense 3G Credr Card Eapense 539 Miscelaneous Expense 710 Interest Expens8 LIAB LITIES 210 Accounts Payable 210 Sales Tax Payable 218 Customar Rennds Payable 220 Uneaned Ren 221 Nores Payable 310 Common Sluck 311 Retained Eamings 313 Income Summary Blue Star Co General Ledger 110 Cash 120 Accounts Receivabe 125 Notas Recsable 120 Invetory 140 Cmce Supplias 141 3tore Supples 142 Prepaid Insurance 180 Land 192 Stora Equipmant 410 Sales 510 RentRevenue EXPENSES 01 Cost of Goods 8nld 521 Delivery Expense 522 Advernaing Expense 524 Dapreclation Expensa-3tore Equipment 531 RentExpense 533 Insuranca Fxpenaa 194 Otice Equipment 195 Aumulated Lepreciation once Equipment 534 Slore Supplies Expense 535 Cmce Supplies Expense 36 Crecit Card Expense 539 Miscellaneous Expense 710 InterestExpense 211 Accounts Payable-Shere Co 218 Sales Tax Payable 219 Customer Refund Payable 220 Unearned Rent 221 Notes Payae EQUITY 310 Common steck 311 Relained Earnings 312 DMdends 313 Income Summar

Explanation / Answer

Journal Shore Co. Date Description Debit Credit Account receivable 112,000 Sales 112,000 cost of goods sold 87,200 merchandise inventory 87,200 Account receivable 1,800 cash 1,800 Cash 111560 Sales discount (112000*2%) 2240 Account receivable (112000+1800) 113800 Journal -Blue star co. Date Description Debit Credit Merchandise inventory 112,000 Accounts payable 112,000 Cash 111,560 Merchandise inventory 2,240 Accounts payable 113,800

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