The following were selected from among the transactions completed by Babcock Company during November of the current
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Question:
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 $90,000, trade discount25%, terms FOB destination, 2/10, n/30. |
4 | Sold merchandise for cash, $36,900. The cost of the goods soldwas $20,480. | |
5 | Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice. | |
6 | Returned merchandise with an invoice amount of $12,750 ($17,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. | |
13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
14 | Sold merchandise with a list price of $239,110 to customers who used VISA and who redeemed $7,500 of pointof- sale coupons. The cost of the goods sold was $137,270. | |
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., $57,100, terms n/30. The cost of the goods sold was $32,270. | |
28 | Paid VISA service fee of $3,700. | |
30 | Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290. | |
30 | During November, printed a coupon with each customer's sales receipt for $2 off the customer's next purchase of over $15. The coupons may be redeemed during December. Of the total of 23,000 coupons printed, it is estimated that 55% will be redeemed. |
Required:
1. | Journalize the November transactions. |
2. | Assume that as of December 31, 10,200 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons. |
Related Book For
Corporate Financial Accounting
ISBN: 978-1285868783
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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