2. The following selected transactions were completed during June between Smith Company and Brown Company: Jun.2....

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2. The following selected transactions were completed during June between Smith Company and Brown Company: Jun.2. 8 8 Smith Company sold merchandise on account to Brown Company, $15,500, terms FOB shipping point, 1/10, n/30. Smith Company paid freight of $510. The cost of the merchandise sold was $9,800. Smith Company sold merchandise on account to Brown Company, $25,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $15,000. Smith Company paid freight of $840 for delivery of merchandise sold to Brown Company on June 8. Brown Company paid Smith Company for purchase of June 2. 12 23 Brown Company paid Smith Company for purchase of June 8. 24 Smith Company sold merchandise on account to Brown Company, $9,500, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,700. 26 Brown Company paid freight of $300 on June 24 purchase from Smith Company. 30 Smith Company granted a customer allowance (credit memo) to Brown Company for $4,300 for merchandise that was returned from the June 24 purchase. The cost of the merchandise returned was $1,500. Record the journal entries for the buyer and seller side. 2. The following selected transactions were completed during June between Smith Company and Brown Company: Jun.2. 8 8 Smith Company sold merchandise on account to Brown Company, $15,500, terms FOB shipping point, 1/10, n/30. Smith Company paid freight of $510. The cost of the merchandise sold was $9,800. Smith Company sold merchandise on account to Brown Company, $25,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $15,000. Smith Company paid freight of $840 for delivery of merchandise sold to Brown Company on June 8. Brown Company paid Smith Company for purchase of June 2. 12 23 Brown Company paid Smith Company for purchase of June 8. 24 Smith Company sold merchandise on account to Brown Company, $9,500, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,700. 26 Brown Company paid freight of $300 on June 24 purchase from Smith Company. 30 Smith Company granted a customer allowance (credit memo) to Brown Company for $4,300 for merchandise that was returned from the June 24 purchase. The cost of the merchandise returned was $1,500. Record the journal entries for the buyer and seller side.

Answer rating: 100% (QA)

Here are the journal entries for both the buyer Brown Company and the seller Smith Company for the g... View the full answer