Question

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 $89,000, trade discount 30%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $38,210. The cost of the merchandise sold was $20,810.
	5	Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice.
	6	Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the merchandise sold was $10,190.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $231,570. The cost of the merchandise sold was $142,060.
	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., $54,800, terms 1/10, n/30. The cost of the merchandise sold was $33,850.
	28	Paid VISA service fee of $3,580.
	30	Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140.

Required:

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

	Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Date	Description	Post Ref.	Debit	Credit
11/3	Merchandise Inventory ($89000 x (1- 30%)	130.00	$62,300.00
	Accounts Payable-Moonlight Co.	211.00		$62,300.00
11/4	Cash	110.00	$38,210.00
	Sales	410.00		$38,210.00
11/4	Cost of Merchandise Sold	510.00	$20,810.00
	Merchandise Inventory	130.00		$20,810.00
11/5	Merchandise Inventory	130.00	$52,280.00
	Accounts Payable-Papoose Creek Co	212.00		$52,280.00
11/6	Accounts Payable-Moonlight Co	211.00	$14,000.00
	Merchandise Inventory	130.00		$14,000.00
11/8	Accounts Receivable-Quinn Co	121.00	$15,010.00
	Sales	410.00		$15,010.00
11/8	Cost of Merchandise Sold	510	$10,910.00
	Merchandise Inventory	130.00		$10,910.00
11/13	Accounts Payable-Moonlight Co	211.00	$48,300.00
	Cash	110.00		$47,334.00
	Merchandise Inventory ($48300 x 2%)	130.00		$966.00
11/14	Cash	110.00	$231,570.00
	Sales	410.00		$231,570.00
11/14	Cost of Merchandise Sold	510.00	$142,060.00
	Merchandise Inventory	130.00		$142,060.00
11/15	Accounts Payable-Papoose Creek Co	212.00	$52,280.00
	Cash	110.00		$51,234.40
	Merchandise Inventory	130.00		$1,045.60
11/23	Cash	110.00	$14,859.90
	Sales Discounts ($15,010 x 1%)		$150.10
	Accounts Receivable-Quinn Co	121.00		$15,010.00
11/24	Accounts Receivable-Rabel Co	122.00	$54,800.00
	Sales	410.00		$54,800.00
11/24	Cost of Merchandise Sold	510	$33,850.00
	Merchandise Inventory	130.00		$33,850.00
11/28	Credit Card Expense	536.00	$3,580.00
	Cash	110.00		$3,580.00
11/30	Sales Returns and Allowances		$6,420.00
	Accounts Receivable-Quinn Co	121.00		$6,420.00
11/30	Merchandise Inventory	130.00	$3,140.00
	Cost of Merchandise Sold	510.00		$3,140.00