The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3 Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $35,370. The cost of the merchandise sold was $23,670. 5 Purchased merchandise on account from Papoose Creek Co., $44,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 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., $17,080 with terms n/15. The cost of the merchandise sold was $10,010. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $246,980. The cost of the merchandise sold was $152,530. 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., $52,400, terms 1/10, n/30. The cost of the merchandise sold was $31,410. 28 Paid VISA service fee of $3,220. 30 Paid Quinn Co. a cash refund of $1,770 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise. CHART OF ACCOUNTS Harrison Company General Ledger ASSETS 110 Cash 121 Accounts Receivable-Quinn Co. 122 Accounts Receivable-Rabel Co. 125 Notes Receivable 130 Merchandise 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 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 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. How does grading work? PAGE 10 JOURNALACCOUNTING EQUATION Score: 195/401 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Mar. 1 Cash 1,280,000.00 Accounts Receivable-Quinn Co. 10,467,733.00 Accounts Receivable-Rabel Co. 74,000,000.00 Oct. 1 Sales 200,000.00 Merchandise Inventory 200,000.00 Dec. 31 Cost of Merchandise Sold 2,610,139.00 Accounts Payable-Moonlight Co. 3,000.00 Dec. 31 Merchandise Inventory 4,331,693.00 Accounts Payable-Moonlight Co. 261,693.00 Cash 4,070,000.00 Jun. 30 Cost of Merchandise Sold 2,138,083.00 Merchandise Inventory 4,070,000.00 Cash Sep. 30 Interest Expense 4,331,693.00 Discount on Bonds Payable 261,693.00 Cash 4,070,000.00 Sep. 30 Interest payable 3,000.00 Interest Expense 9,000.00 Istallment note 28,673.00 Cash 40,673.00 Dec. 31 Interest Expense 2,570.00 Interest payable 2,570.00 Interest Expense 4,331,693.00 Discount on Bonds Payable 261,693.00 Cash 4,070,000.00 Jun. 30 Bounds payable 740,000,000.00 loss on early redemption 7,940,961.00 Cash 72,520,000.00 Discount on Bonds Payable 9,420,961.00 Sep. 30 Interest payable 2,570.00 Interst expense 7,710.00 Installment Note 40,673.00 Points: 38.9 / 80 Check My Work Journalize these transactions from the buyer's point of view. Using the perpetual inventory system, purchases of inventory on account are recorded by increasing both the merchandise inventory account and the accounts payable account. Recall that FOB shipping point freight is the buyer's cost, while FOB destination freight is the seller's expense. Often freight must be prepaid for the carrier to deliver. Nov. 3: Calculate any trade discount before the purchase or sale amount is recorded. Nov. 5: Using the perpetual inventory system, purchases of inventory on account are recorded by debiting the merchandise inventory account and crediting the accounts payable account. Freight expense added to the invoice increases the cost of the merchandise. Nov. 6: A return of merchandise that had a trade discount is recorded without the trade discount. Using the perpetual inventory system, any discounts or returns are recorded directly by the buyer who debits Accounts Payable and credits Merchandise Inventory, basically reversing what was done in recording the purchase. Nov. 13 and 15: Returns are not eligible for discounts. The cash paid on account is the difference between the invoice and the discount. Journalize these transactions from the seller's point of view. Keep in mind that the sales discounts are given on the outstanding balance of the sale transaction, except for any freight costs. Nov. 4: Two entries are required for: (1) the cash sale and (2) the cost of the merchandise sold and inventory decrease on the seller's records. Nov. 14: Remember that credit card transactions are recorded as cash sales. Two entries are required: (1) the sale for cash and (2) the cost of the merchandise sold and inventory decrease on the seller's records. Nov. 23: Since no discount is allowed, no discount is recorded. The cash paid is equal to the receivable on the seller's books. Nov. 24: Two entries are required for: (1) the sale on account and (2) the cost of the merchandise sold and inventory decrease on the seller's records. Nov. 28: Record the service fee as an expense. Nov. 30: Customer Refunds Payable is debited while the credit is to Cash