Chapter 5 Accounting for Merchandising Businesses LIND GENERAL LEDCEN Obj. 2 PR 5-3A 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 $85,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600. 5. Purchased merchandise on account from Papoose Creek Co. $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. 6. Returned $13,500 ($18,000 list price less trade discount of 2596) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co. $15,600 with terms n/15. The cost of the goods sold was $9,400 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $236,000. The cost of the goods sold was $140,000 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. $56,900, terms 1/10, 1/30. The cost of the goods sold was $34,000. 28. Paid VISA service fee of $3,540. 30. Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300. Instructions Journalize the transactions. Obj. 2 PR 5-4A Sales-related and purchase-related transactions for seller and buyer using perpetual inventory system