Instructions Nov. 3 Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4 5 Sold merchandise for cash, $35,370. The cost of the goods sold was $23,670. Purchased merchandise on account from Papoose Creek Co., $44,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. Returned $13,300 ($19,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. 6 8 Sold merchandise on account to Quinn Co., $17,080 with terms n/15. The cost of the goods sold was $10,010. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $246,980. The cost of the goods sold was $152,530. 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., $52,400, terms 1/10, n/30. The cost of the goods sold was $31,410. 28 Paid VISA service fee of $3,220. 30 Paid Quinn Co. a cash refund of $6,020 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,390. CHART OF ACCOUNTS Babcock Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable-Quinn Co. 610 Interest Revenue 122 Accounts Receivable-Rabel Co. 125 Notes Receivable EXPENSES 130 Inventory 510 Cost of Goods Sold 131 Estimated Returns Inventory 521 Delivery Expense 522 Advertising Expense 140 Office Supplies 141 Store Supplies 524 Depreciation Expense-Store Equipment 142 Prepaid Insurance 525 Depreciation Expense-Office Equipment 180 Land 526 Salaries Expense 192 Store Equipment 531 Rent Expense 193 Accumulated Depreciation Store Equipment 194 Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 195 Accumulated Depreciation Office Equipment LIABILITIES 539 Miscellaneous Expense 211 Accounts Payable-Moonlight Co. 710 Interest Expense 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT A ASSETS 1 2 3 4 5 6 7 8 9 10 11 JOURNAL DESCRIPTION POST. REF. DEBIT ACCOUNTING. FOLLATION ASSETS LIABILITIES EQUITY CREDIT Instructions Nov. 3 Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4 5 Sold merchandise for cash, $35,370. The cost of the goods sold was $23,670. Purchased merchandise on account from Papoose Creek Co., $44,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice. Returned $13,300 ($19,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. 6 8 Sold merchandise on account to Quinn Co., $17,080 with terms n/15. The cost of the goods sold was $10,010. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $246,980. The cost of the goods sold was $152,530. 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., $52,400, terms 1/10, n/30. The cost of the goods sold was $31,410. 28 Paid VISA service fee of $3,220. 30 Paid Quinn Co. a cash refund of $6,020 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,390. CHART OF ACCOUNTS Babcock Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable-Quinn Co. 610 Interest Revenue 122 Accounts Receivable-Rabel Co. 125 Notes Receivable EXPENSES 130 Inventory 510 Cost of Goods Sold 131 Estimated Returns Inventory 521 Delivery Expense 522 Advertising Expense 140 Office Supplies 141 Store Supplies 524 Depreciation Expense-Store Equipment 142 Prepaid Insurance 525 Depreciation Expense-Office Equipment 180 Land 526 Salaries Expense 192 Store Equipment 531 Rent Expense 193 Accumulated Depreciation Store Equipment 194 Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 195 Accumulated Depreciation Office Equipment LIABILITIES 539 Miscellaneous Expense 211 Accounts Payable-Moonlight Co. 710 Interest Expense 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT A ASSETS 1 2 3 4 5 6 7 8 9 10 11 JOURNAL DESCRIPTION POST. REF. DEBIT ACCOUNTING. FOLLATION ASSETS LIABILITIES EQUITY CREDIT