Journalize the Following Transactions for Both Abbott Co

question 53

Essay

Journalize the following transactions for both Abbott Co.
(seller) and Dalton Co.
(buyer). Assume both the companies use the perpetual inventory system.July 3Abbott Co. sold merchandise on account to Dalton Co., $7,500, terms FOB shipping point, n/eom. The cost of the merchandise sold was $4,400.5Dalton Co. paid $275 freight charges on purchase from Abbott Co.9Abbott Co. issued Dalton Co. a credit memo for merchandise returned, $2,250.The cost of the merchandise returned was $1,325.11Abbott Co. received payment from Dalton Co. for purchase of July 3.?? $\quad\quad\quad\quad\quad\quad\quad\quad\textbf { Abbott Co. } \quad \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\textbf { Dalton Co. }\\\begin{array}{|l|l|l|l|l|l|l|}\hline \textbf { Date } & \textbf { Description } & \textbf { Debit } & \textbf { Credit } & \textbf { Description } & \textbf { Debit } & \textbf { Credit } \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline\end{array}$

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Definitions:

Marginal Costs

The hike in total expenditure resulting from the production of an incremental unit of a product or service.

Marginal Benefits

The incremental enjoyment or usefulness received from consuming or manufacturing another unit of a commodity or service.

Public Good

Products or services accessible to all people within society at no expense, made possible by the government or by private groups or individuals, not for the purpose of financial gain.

Bike Paths

Designated routes or tracks exclusively for bicycles, providing a safe space for cyclists away from motor vehicle traffic.