Transactions for buyer and seller

shore co. sold merchandise to blue star co. on account, $112,000, terms fob shipping point, 2/10, n/30. the cost of the merchandise sold is $67,200. shore co. paid freight of $1,800.

journalize shore co.'s entry for the sale, purchase, and payment of amount due.

accounts receivable-blue star co.

sales

cost of merchandise sold

merchandise inventory

common stock

cash

cash

accounts receivable-blue star co.