PR 5-3A Sales and purchase-related transactions using perpetual inventory system Obj. 2 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 merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co. (Continued) tights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). ised content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. for Retail Businesses . 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 point- of-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. 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. 30. During November, printed a coupon with each customer's sales receipt for $2 off the customer's next pur- chase 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. Instructions 1. Journalize the November transactions of Babcock Company using the periodic inventory system. 2. Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons.