Chapter 5 Accounting for Merchandising Businesses R 5-3A Sales-related and purchase-related transactions using perpetual he following were selected from among the transactions completed by Babcock ov. 3. Purchased Obj. 2 Company terms FOB nventory system uring November of the current year merchandise on account from Moonlight Co. list price $85,000 trade discount 25% 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 destination, 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 25%) 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, n/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. tructions malize the transactions. Sales-related and purchase-related transactions for seller and buyer 5-4A g perpetual inventory system following selected transactions were completed during August Obj. 2 between Summit Company Beartooth Co.: n/eom. The cost of the goods sold was $28,800. 2. Summit Company paid freight of $1,150 for delivery of merchandise so 1. Summit Company sold merchandise on account to Beartooth Co., $4 Co, $48,000, terms FOB destination, 2/15 sold to B