Question

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 $88,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4.	Sold merchandise for cash, $34,160. The cost of the goods sold was $20,380.
5.	Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $890 added to the invoice.
6.	Returned $11,200 ($16,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
8.	Sold merchandise on account to Quinn Co., $15,330 with terms n/15. The cost of the merchandise sold was $8,890.
13.	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14.	Sold merchandise on VISA, $226,690. The cost of the goods sold was $134,480.
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., $58,800, terms 1/10, n/30. The cost of the goods sold was $31,420.
28.	Paid VISA service fee of $3,800.
30.	Paid Quinn Co. a cash refund of $5,740 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,280.

Required:

Journalize the transactions.

Nov. 3
Nov. 4-sale
Nov. 4-cost
Nov. 5
Nov. 6
Nov. 8
Nov. 8
Nov. 13
Nov. 14-sale
Nov. 14-cost
Nov. 15
Nov. 23
Nov. 24-sale
Nov. 24-cost
Nov. 28
Nov. 30-refund
Nov. 30-cost

Answer 1