Sales-related and purchase-related transactions using perpetual inventory system Instructions Chart of Accounts Journal Instructions The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual Inventory system Nov 4 5 6 3 Purchased merchandise on account from Moonlight Co ist price $88,000, trade discount 20%, terms FOB destination 2/10, no. Sold merchandise for cash, $41.250. The cost of the seade sold was $22,250. Purchased merchandise on account from Papoose Creek Co, $43,700, torms FOB shining point 2/10, 1/30, with prepaid freight of 5840 added to the invoice Returned $13,600 ($17.000 fut prior less trade discount of 20%) of merchandise purchased on November 3 trom Moonlight Co 8 Sold matchandise on account to Quinn Co, 816,100 with former/16. The cost of the goods sold was 59,440 Paid Moverlight Co on account for purchase of November 3, fous return of November 6 Sold merchardino on VISA $220,120. The cont of the goods told was $135,400, Paid Papouse Creek Co. on account for purchase of November Received cash on account from sale of November to Quinn Co. Hold merchandise on account to Rabel Cosco, , tornis 110.30. The cont of the goods sold wm 13 14 15 23 24 $33,120 20 30 Pald VISA cervice fee of $9,500 Pad Quinn Co a cash round of 56.420 for returned merchandise from sale of November 8 The cou o the returned merchandise was 2010 Chart of Accounts CHART OF ACCOUNTS Babcock Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable-Quinn Co. 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 180 Land 531 Rent Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 539 Miscellaneous Expense LIABILITIES 539 Miscellaneous Expense 710 Interest Expense 211 Accounts Payable-Moonlight Co. 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 X Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST, BET DENT CREDIT ASSETS LIABILITIES TQUITY 1 1 1 . 10 11 11 11