Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System 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 $87,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $37,550. The cost of the goods sold was $23,530. 5. Purchased merchandise on account from Papoose Creek Co., $52,250, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice. 6. Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,360 with terms n/15. The cost of the merchandise sold was $9,210. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $223,080. The cost of the goods sold was $146,100. 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., $61,400, terms 1/10, n/30. The cost of the goods sold was $34,150. 28. Paid VISA service fee of $3,760. 30. Paid Quinn Co. a cash refund of $5,600 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180. Required: Journalize the transactions. Nov. 3 Merchandise Inventory Accounts Payable-Moonlight Co. Nov. 4-sale Cash Sales Nov. 4-cost Cost of Goods Sold Merchandise Inventory Nov. 5 Merchandise Inventory Accounts Payable-Papoose Creek Co. Nov. 6 Accounts Payable-Moonlight Co. Merchandise Inventory Nov. 8 Accounts Receivable-Quinn Co. Sales Nov. 8 Cost of Goods Sold Merchandise Inventory Nov. 13 Accounts Payable-Moonlight Co. Cash Nov. 14-sale Cash Sales Nov. 14-cost Cost of Goods Sold Merchandise Inventory Nov. 15 Accounts Payable-Papoose Creek Co. Cash Nov. 23 Cash Accounts Receivable-Quinn Co. Nov. 24-sale Accounts Receivable-Rabel Co. Sales Nov. 24-cost Cost of Goods Sold Merchandise Inventory Nov. 28 Credit Card Expense Cash Nov. 30-refund Customers Refunds Payable Cash Nov. 30-cost Merchandise Inventory Sales

Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System 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 $87,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $37,550. The cost of the goods sold was $23,530. 5. Purchased merchandise on account from Papoose Creek Co., $52,250, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice. 6. Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,360 with terms n/15. The cost of the merchandise sold was $9,210. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $223,080. The cost of the goods sold was $146,100. 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., $61,400, terms 1/10, n/30. The cost of the goods sold was $34,150. 28. Paid VISA service fee of $3,760. 30. Paid Quinn Co. a cash refund of $5,600 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180. Required: Journalize the transactions. Nov. 3 Merchandise Inventory Accounts Payable-Moonlight Co. Nov. 4-sale Cash Sales Nov. 4-cost Cost of Goods Sold Merchandise Inventory Nov. 5 Merchandise Inventory Accounts Payable-Papoose Creek Co. Nov. 6 Accounts Payable-Moonlight Co. Merchandise Inventory Nov. 8 Accounts Receivable-Quinn Co. Sales Nov. 8 Cost of Goods Sold Merchandise Inventory Nov. 13 Accounts Payable-Moonlight Co. Cash Nov. 14-sale Cash Sales Nov. 14-cost Cost of Goods Sold Merchandise Inventory Nov. 15 Accounts Payable-Papoose Creek Co. Cash Nov. 23 Cash Accounts Receivable-Quinn Co. Nov. 24-sale Accounts Receivable-Rabel Co. Sales Nov. 24-cost Cost of Goods Sold Merchandise Inventory Nov. 28 Credit Card Expense Cash Nov. 30-refund Customers Refunds Payable Cash Nov. 30-cost Merchandise Inventory Sales

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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Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System

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 $87,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4.	Sold merchandise for cash, $37,550. The cost of the goods sold was $23,530.
5.	Purchased merchandise on account from Papoose Creek Co., $52,250, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice.
6.	Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
8.	Sold merchandise on account to Quinn Co., $14,360 with terms n/15. The cost of the merchandise sold was $9,210.
13.	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14.	Sold merchandise on VISA, $223,080. The cost of the goods sold was $146,100.
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., $61,400, terms 1/10, n/30. The cost of the goods sold was $34,150.
28.	Paid VISA service fee of $3,760.
30.	Paid Quinn Co. a cash refund of $5,600 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180.

Required:

Journalize the transactions.

Nov. 3	Merchandise Inventory
	Accounts Payable-Moonlight Co.
Nov. 4-sale	Cash
	Sales
Nov. 4-cost	Cost of Goods Sold
	Merchandise Inventory
Nov. 5	Merchandise Inventory
	Accounts Payable-Papoose Creek Co.
Nov. 6	Accounts Payable-Moonlight Co.
	Merchandise Inventory
Nov. 8	Accounts Receivable-Quinn Co.
	Sales
Nov. 8	Cost of Goods Sold
	Merchandise Inventory
Nov. 13	Accounts Payable-Moonlight Co.
	Cash
Nov. 14-sale	Cash
	Sales
Nov. 14-cost	Cost of Goods Sold
	Merchandise Inventory
Nov. 15	Accounts Payable-Papoose Creek Co.
	Cash
Nov. 23	Cash
	Accounts Receivable-Quinn Co.
Nov. 24-sale	Accounts Receivable-Rabel Co.
	Sales
Nov. 24-cost	Cost of Goods Sold
	Merchandise Inventory
Nov. 28	Credit Card Expense
	Cash
Nov. 30-refund	Customers Refunds Payable
	Cash
Nov. 30-cost	Merchandise Inventory
	Sales

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