Question

help with journalizing

The following were selected from among the transactions completed by Babcock Company during November of the current year Nov. 3 4 5 6 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30 Sold merchandise for cash, $37,230. The cost of the goods sold was $22,500 Purchased merchandise on account from Papoose Creek Co., $48,450, terms FOB shipping point 2/10, 1/30, with prepaid freight of $800 added to the invoice Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. Sold merchandise on account to Quinn Co., $15,810 with terms n/15. The cost of the goods sold was $10,020 Paid Moonlight Co, on account for purchase of November 3, less return of November 6. Sold merchandise on VISA, $239,690. The cost of the goods sold was $129,230. 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., $54,200, terms 1/10, 1/30. The cost of the goods sold was $33,490 Paid VISA service fee of $3,220. Paid Quinn Co. a cash refund of $6,330 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,580 14 15 23 24 28 30

Answer 1

Babcock Company
Journal entries
Date	Account	Debit	Credit	Calculation
3-Nov	Merchandise Inventory	70,500		=94,000*(1-25%)
	Accounts Payable-Moonlight Co.		70,500
4-Nov	Cash	37,230
	Sales		37,230
	Cost of goods sold	22,500
	Merchandise Inventory		22,500
5-Nov	Merchandise Inventory	49,250		=48,450+800
	Accounts Payable-Papoose Creek		49,250
6-Nov	Accounts Payable-Moonlight Co.	15,000
	Merchandise Inventory		15,000
8-Nov	Accounts Receivable-Quinn Co.	15,810
	Sales		15,810
	Cost of goods sold	10,020
	Merchandise Inventory		10,020
13-Nov	Accounts Payable-Moonlight Co.	55,500		=70,500-15,000
	Cash		54,390
	Merchandise Inventory		1,110	=55,500*2%
14-Nov	Cash	239,690
	Sales		239,690
	Cost of goods sold	129,230
	Merchandise Inventory		129,230
15-Nov	Accounts Payable-Papoose Creek	49,250
	Cash		48,281
	Merchandise Inventory		969	=48,450*2%
23-Nov	Cash	15,810
	Accounts Receivable-Quinn Co.		15,810
24-Nov	Accounts Receivable-Rabel Co.	54,200
	Sales		54,200
	Cost of goods sold	33,490
	Merchandise Inventory		33,490
28-Nov	VISA service fees	3,220
	Cash		3,220
30-Nov	Sales returns and allowances	6,330
	Cash		6,330
	Merchandise Inventory	3,580
	Cost of goods sold		3,580

Note : 15th Nov entry - Cash discount is on purchase of $48,450 and not on freight of $800