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 $76,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4.	Sold merchandise for cash, $34,580. The cost of the goods sold was $20,970.
5.	Purchased merchandise on account from Papoose Creek Co., $46,900, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 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., $14,990 with terms n/15. The cost of the merchandise sold was $8,840.
13.	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14.	Sold merchandise on VISA, $232,810. The cost of the goods sold was $135,460.
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., $58,400, terms 1/10, n/30. The cost of the goods sold was $34,030.
28.	Paid VISA service fee of $3,510.
30.	Paid Quinn Co. a cash refund of $6,190 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,310.

Answer 1