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Question
Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both companies use a perpetual inventory system.
| July 3 | Abbott Co. sold merchandise on account to Dalton Co., $7,500, terms FOB shipping point, n/eom. The cost of the merchandise sold was $4,400. |
| 5 | Dalton Co. paid $275 to freight company for purchase from Abbott Co. |
| 9 | Abbott Co. issued Dalton Co. a credit memo for defective merchandise, $2,250. The merchandise was not returned. |
| 11 | Abbott Co. received payment from Dalton Co. for purchase of July 3. |
| Abbott Co. | Dalton Co. | |||||
| Date | Description | Debit | Credit | Description | Debit | Credit |
Answer
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