The following were selected from among the transactions completed by Babcock Company during November of the current your Nov. 5 6 8 3 Purchased merchandise on account from Moonlight Co. Ist price $85,000, trade discount 25%, torms FOB destination, 2/10, 1/30 Sold merchandise for cash, $37,680. The cost of the goods sold was $22,000 Purchased merchandise on account from Papoose Crook Co. 547,500, torms FOB shoping point 2/10, 1/30, with prepaid freight of $810 added to the involop Rotumed $13,500 (518,000 list price loss trade discount of 25%) of morchandise purchased on November 3 trom Moonlight Co. Sold merchandise on nocount to Qunn Co., $15,600 with tormo w15. The cost of the goods sold was $9,400 Pald Moonlight Co. on account for purchase of November 3, less roturn of November 6. Sold merchandise on VISA, $236,000. The cost of the goods sold was $140,000 Pald Papoose Creek Co. on account for purchase of November 5. 23 Rocolved cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise on account to Rabel Co. $56,900, terms 1/10, 1/30. The cost of the goods sold was $34,000 Paid VISA service fee of $3,540 Paid Quinn Co. a cash retund of $8,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300. 13 14 15 28 30 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 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Experise 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 211 Accounts Payable-Moonlight Co. 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 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 Expenso 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 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 313 Income Summary Journakze the transactions. Refer to the Chart of Accounts for exact wordting of account titkos. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DERIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 10 11