Selected transactions for Babcock Company during November of the current year are listed in Problem 5-3A. In Problem 5-3A, the
In Problem 5-3A, 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 $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4. Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
5. Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6. Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
11. Sold merchandise on account to Quinn Co., list price $24,000, trade discount 35%, terms 1/10, n/30. The cost of the merchandise sold was $9,400.
13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6 and discount.
14. Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
15. Paid Papoose Creek Co. on account for purchase of November 5, less discount.
21. Received cash on account from sale of November 11 to Quinn Co., less discount.
24. Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
28. Paid VISA service fee of $3,540.
30. Received merchandise returned by Rabel Co. from sale on November 24, $8,400.
The cost of the returned merchandise was $5,000.
Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system.
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Chapter # 5
Section: Problem Set A
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Question Posted: February 28, 2014 08:05:27