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Instructions. The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3 Purchased merchandise on
Instructions. 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. Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600. 4 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 merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) 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 with a list price of $236,000 to customers who used VISA and who redeemed $8,000 of pointof-sale coupons. 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 n/30. The cost of the goods sold was $34,000. 28 Paid VISA service fee of $3,540. 301 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. 30 00 During November, printed a coupon with each customer's sales receipt for $2 off the customer's next purchase of over $15. The coupons may be redeemed during December. Of the total of 20,000 coupons printed, it is estimated that 55% will be redeemed.
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