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 $94,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $35,040. The cost of the merchandise sold was $20,610.
	5	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.
	6	Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the merchandise sold was $9,130.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $243,720. The cost of the merchandise sold was $148,260.
	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., $52,500, terms 1/10, n/30. The cost of the merchandise sold was $36,660.
	28	Paid VISA service fee of $3,750.
	30	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.

Required:

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

Answer 1