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 $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $34,100. The cost of the merchandise 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 $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., $15,270 with terms n/15. The cost of the merchandise sold was $8,940.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $229,890. The cost of the merchandise 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 1/10, n/30. The cost of the merchandise 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.

Required:

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

CHART OF ACCOUNTS
Babcock Company
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Quinn Co. 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Moonlight Co. 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue

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

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Answer 1

Date	Account Titles	Debit	Credit
Nov-03	Inventory	$           69,750
	Accounts Payable - Moonlight Co.		$            69,750
Nov-04	Cash	$           34,100
	Sales Revenue		$            34,100
	Cost of Goods Sold	$           22,080
	Inventory		$            22,080
Nov-05	Inventory	$           44,400
	Accounts Payable - Papoose Creek Co.		$            44,400
Nov-06	Accounts Payable - Moonlight Co.	$           15,000
	Inventory		$            15,000
Nov-08	Accounts Receivable - Quinn Co.	$           15,270
	Sales Revenue		$            15,270
	Cost of Goods Sold	$              8,940
	Inventory		$              8,940
Nov-13	Accounts Payable - Moonlight Co.	$           54,750
	Inventory		$              1,095
	Cash		$            53,655
Nov-14	Cash	$         229,890
	Sales Revenue		$          229,890
	Cost of Goods Sold	$         153,500
	Inventory		$          153,500
Nov-15	Accounts Payable - Papoose Creek Co.	$           44,400
	Inventory		$                  873
	Cash		$            43,527
Nov-23	Cash	$           15,270
	Accounts Receivable - Quinn Co.		$            15,270
Nov-24	Accounts Receivable - Rabel Co.	$           51,300
	Sales Revenue		$            51,300
	Cost of Goods Sold	$           33,280
	Inventory		$            33,280
Nov-28	Service Fee	$              3,410
	Cash		$              3,410
Nov-30	Sales Returns and Allowance	$              5,610
	Cash		$              5,610
	Inventory	$              3,180
	Cost of Goods Sold		$              3,180