The following were selected from among the transactions completed by Babcock Company during November of the current year:Nov.3Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600. 5Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. 6Returned merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co. 8Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the goods sold was $9,400. 13Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14Sold merchandise with a list price of $236,000 to customers who used VISA and who redeemed $8,000 of pointof- sale coupons. The cost of the goods sold was $140,000. 15Paid Papoose Creek Co. on account for purchase of November 5. 23Received cash on account from sale of November 8 to Quinn Co. 24Sold merchandise on account to Rabel Co., $56,900, terms n/30. The cost of the goods sold was $34,000. 28Paid VISA service fee of $3,540. 30Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300. 30During November, printed a coupon with each customer’s sales receipt for $2 off the customer’s next purchase of over $15. The coupons may be redeemed during December. Of the total of 20,000 coupons printed, it is estimated that 55% will be redeemed. Required:1.Journalize the November transactions of Babcock Company using the periodic inventory system.2.Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons. 1DATENov. 3PurchasesDESCRIPTION2Accounts Payable-Moonlight Co.3Nov. 4 Cash4Sales5Nov. 30Sales6Interest Revenue7Nov-5Inventory8CashJOURNAL910Nov. 611Accounts Payable-Papoose Creek Co.Accounts Payable-Moonlight Co.Inventory12Nov. 8Accounts Receivable-Quinn Co.13Sales14Nov. 8Purchases15Inventory16Nov. 13Accounts Payable-Moonlight Co.17Cash18Nov. 14Cash19Sales0020Nov. 14Purchases21Inventory22Nov. 15Cash23Sales2424Nov. 23Accounts Receivable-Quinn Co.25Sales26Nov. 24Purchases227Interest Revenue28Nov. 30Inventory29Purchases Returns and AllowancesPOST. REF.D

Detailed explanation: SolutionBelow is the detailed step-by-step journalizing of Babcock Company's…

Answered: 1 DATE Nov. 3 Purchases DESCRIPTION 2…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 13GI

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The following were selected from among the transactions completed by Babcock Company during November of the current year:

Nov.	3	Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600.
	5	Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
	6	Returned merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the goods sold was $9,400.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise with a list price of $236,000 to customers who used VISA and who redeemed $8,000 of pointof- sale coupons. The cost of the goods sold was $140,000.
	15	Paid Papoose Creek Co. on account for purchase of November 5.
	23	Received cash on account from sale of November 8 to Quinn Co.
	24	Sold merchandise on account to Rabel Co., $56,900, terms n/30. The cost of the goods sold was $34,000.
	28	Paid VISA service fee of $3,540.
	30	Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.
	30	During November, printed a coupon with each customer’s sales receipt for $2 off the customer’s next purchase of over $15. The coupons may be redeemed during December. Of the total of 20,000 coupons printed, it is estimated that 55% will be redeemed.

Required:

1.	Journalize the November transactions of Babcock Company using the periodic inventory system.
2.	Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons.

1
DATE
Nov. 3
Purchases
DESCRIPTION
2
Accounts Payable-Moonlight Co.
3
Nov. 4 Cash
4
Sales
5
Nov. 30
Sales
6
Interest Revenue
7
Nov-5
Inventory
8
Cash
JOURNAL
9
10
Nov. 6
11
Accounts Payable-Papoose Creek Co.
Accounts Payable-Moonlight Co.
Inventory
12
Nov. 8
Accounts Receivable-Quinn Co.
13
Sales
14
Nov. 8
Purchases
15
Inventory
16
Nov. 13
Accounts Payable-Moonlight Co.
17
Cash
18
Nov. 14
Cash
19
Sales
00
20
Nov. 14
Purchases
21
Inventory
22
Nov. 15
Cash
23
Sales
24
24
Nov. 23
Accounts Receivable-Quinn Co.
25
Sales
26
Nov. 24
Purchases
2
27
Interest Revenue
28
Nov. 30
Inventory
29
Purchases Returns and Allowances
POST. REF.
D

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