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Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Babcock Company during November of the current
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System 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 $87,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $41,430. The cost of the goods sold was $21,880. 5. Purchased merchandise on account from Papoose Creek Co., $46,700, terms FOB shipping point, 2/10, n/30, with prepaid freight of $890 added to the invoice. 6. Returned $13,300 ($19,000 list price less trade discount of 30 %) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $16,100 with terms n/15. The cost of the merchandise sold was $10,060. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $236,100. The cost of the goods sold was $135,510 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., $59,000, terms 1/10, n/30. The cost of the goods sold was $30,650. 28. Paid VISA service fee of $3,680. 30. Paid Quinn Co. a cash refund of $6,030 for returned merchandise from sale of November 8, The cost of the returned merchandise was $3,090. Required: Journalize the transactions Nov. 3 Inventory Accounts Payable-Moonlight Co. Nov. 4-sale Cash Sales Nov. 4-cost Cost of Goods Sold Inventory Cost of Goods Sold lov. 4-cost Inventory Inventory Nov. 5 Accounts Payable-Papoose Creek Co. Nov. 6 Accounts Payable-Moonlight Co. Inventory Nov. 8 Accounts Receivable-Quinn Co. Sales Nov. 8 Cost of Goods Sold Inventory Accounts Payable-Moonlight Co. Nov. 13 Sales Discounts Cash Nov. 14-sale Sales Nov. 14-cost Cost of Goods Sold Inventory Accounts Payable- Papoose Creek Co. Nov. 15 Inventory OOODO0OO0
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