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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

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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 Purchased merchandise on account from Moonlight Co, list 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 $22,600 Purchased marchandise on account from Papoose Creek Co., 547,500, terms FOB shipping point 2/10, 1/30, with prepaid freight of 5810 added to the invoice Returned 13,500 ($18,000 list priceless trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co Sold merchandise on account to Quinn Co., $15,600 with terms 15. The cost of the goods sold was 6 8 $9.400 13 14 15 23 24 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. Sold merchandise on VISA, $236,000. The cost of the goods sold was $140,000 Paid Papoose Creek Co. on account for purchase of November 5. Received cash on account from sale of November 8 to Quinn Co. Sold merchandise on account to Rabel Co., 556,900, terms 1/10,n/30. The cost of the goods sold was $34,000 Paid VISA service fee of $3,540. 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 28 30 ASSETS REVENUE 410 Sales 110 Cash 121 Accounts Receivable-Quinn Co. 610 Interest Revenue 122 Accounts Receivable-Rabel Co. 125 Notes Receivable EXPENSES 130 Inventory 510 Cost of Goods Sold 131 Estimated Returns Inventory 140 Office Supplies 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 141 Store Supplies 142 Prepaid Insurance 180 Land 526 Salaries Expense 180 Land 526 Salaries Expense 531 Rent Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 533 Insurance Expense 194 Office Equipment 534 Store Supplies Expense 195 Accumulated Depreciation Office Equipment 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 539 Miscellaneous Expense 211 Accounts Payable-Moonlight Co. 710 Interest Expense 212 Accounts Payable-Papoose Creek Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DATE DESCRIPTION POST REF DEBIT 2 3

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