The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetua inventory system. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30. Sold merchandise for cash, $35,040. The cost of the goods sold was $20,610. Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 4 5 6 8 13 14 15 23 24 28 30 Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the goods sold was $9,130. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. Sold merchandise on VISA, $243,720. The cost of the goods sold was $148,260. Paid Papoose Creek Co. on account for purchase of November 5. Received cash on account from sale of November 8 to Quinn Co. Sold merchandise on account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the goods sold was $36,660. Paid VISA service fee of $3,750. Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,450. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetua inventory system. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30. Sold merchandise for cash, $35,040. The cost of the goods sold was $20,610. Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 4 5 6 8 13 14 15 23 24 28 30 Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the goods sold was $9,130. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. Sold merchandise on VISA, $243,720. The cost of the goods sold was $148,260. Paid Papoose Creek Co. on account for purchase of November 5. Received cash on account from sale of November 8 to Quinn Co. Sold merchandise on account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the goods sold was $36,660. Paid VISA service fee of $3,750. Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,450. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual
inventory system.
Nov.
3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms
FOB destination, 2/10, n/30.
Sold merchandise for cash, $35,040. The cost of the goods sold was $20,610.
Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point,
2/10, n/30, with prepaid freight of $850 added to the invoice.
4
5
6
8
13
14
15
23
24
28
30
Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on
November 3 from Moonlight Co.
Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the goods sold was
$9,130.
Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
Sold merchandise on VISA, $243,720. The cost of the goods sold was $148,260.
Paid Papoose Creek Co. on account for purchase of November 5.
Received cash on account from sale of November 8 to Quinn Co.
Sold merchandise on account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the goods sold was
$36,660.
Paid VISA service fee of $3,750.
Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of
the returned merchandise was $3,450.
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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