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 $93,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $34,100. The cost of the goods sold was $22,080. 5 Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice. 6 Returned merchandise with an invoice amount of $15,000 ($20,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $15,270 with terms n/15. The cost of the goods sold was $8,940. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise with a list price of $229,890 to customers who used VISA and who redeemed $7,500 of pointof- sale coupons. The cost of the goods sold was $153,500. 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., $51,300, terms n/30. The cost of the goods sold was $33,280. 28 Paid VISA service fee of $3,410. 30 Paid Quinn Co. a cash refund of $5,610 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180. 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 25,000 coupons printed, it is estimated that 55% will be redeemed. Required: 1. Journalize the November transactions. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $34,100. The cost of the goods sold was $22,080.
	5	Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice.
	6	Returned merchandise with an invoice amount of $15,000 ($20,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,270 with terms n/15. The cost of the goods sold was $8,940.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise with a list price of $229,890 to customers who used VISA and who redeemed $7,500 of pointof- sale coupons. The cost of the goods sold was $153,500.
	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., $51,300, terms n/30. The cost of the goods sold was $33,280.
	28	Paid VISA service fee of $3,410.
	30	Paid Quinn Co. a cash refund of $5,610 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180.
	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 25,000 coupons printed, it is estimated that 55% will be redeemed.

Required:

1.	Journalize the November transactions.
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.

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I have 4 more journal lines at the end of the journal. Also, answer this, 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.

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