In: Accounting
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. |
Journalize these transactions
Nov. 3 | Inventory | ||
Accounts Payable-Moonlight Co. | |||
Nov. 4-sale | Cash | ||
Sales | |||
Nov. 4-cost | Cost of Goods Sold | ||
Inventory | |||
Nov. 5 | Inventory | ||
Accounts Payable-Papoose Creek Co. | |||
Nov. 6 | Accounts Payable-Moonlight Co. | ||
Inventory | |||
Nov. 8 | Accounts Receivable-Quinn Co. | ||
Sales | |||
Nov. 8 | Cost of Goods Sold | ||
Inventory | |||
Nov. 13 | Accounts Payable-Moonlight Co. | ||
Cash | |||
Nov. 14-sale | Cash | ||
Sales | |||
Nov. 14-cost | Cost of Goods Sold | ||
Inventory | |||
Nov. 15 | Accounts Payable-Papoose Creek Co. | ||
Cash | |||
Nov. 23 | Cash | ||
Accounts Receivable-Quinn Co. | |||
Nov. 24-sale | Accounts Receivable-Rabel Co. | ||
Sales | |||
Nov. 24-cost | Cost of Goods Sold | ||
Inventory | |||
Nov. 28 |