Question

Chapter 6 Homework Problems Show Me How Calculator eBook Print ltem 1. PR.06-01.ALGO Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Babcock Company during November of the current year 2. PR.06-03.ALG Nov. 3, Purchased merchandise on account from Moonlight Co., list price $91,000, trade discount 20%, terms FOB destination, 2/10, n/30. 3. PR.06-05 ALGO 4. Sold merchandise for cash, $36,310. The cost of the goods sold was $22,050, 5. Purchased merchandise on account from Papoose Creek Co., $42,750, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to 6. Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,150 with terms n/15. The cost of the merchandise sold was $9,750 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $220,790. The cost of the goods sold was $152,750 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., $60,600, terms 1/10, n/30. The cost of the goods sold was $31,910. 28. Paid VISA service fee of $3,300. 30, Paid Quinn Co. a cash refund of $5,980 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,500 Required Journalize the transactions. Merchandise Inventory Check My Work 1 more Check My Work uses remaining. Previous Next Progress: 2/3 items

Answer 1

In the books of Babcock Company:

Date	Account Titles	Debit	Credit
		$	$
Nov 3	Merchandise Inventory	72,800
	Accounts Payable: Moonlight Co.		72,800
Nov 4	Cash	36,310
	Sales		36,310
Nov 4	Cost of Goods Sold	22,050
	Merchandise Inventory		22,050
Nov 5	Merchandise Inventory	42,750
	Accounts Payable: Papoose Creek Co.		42,750
Nov 6	Accounts Payable: Moonlight Co.	16,000
	Merchandise Inventory		16,000
Nov 8	Accounts Receivable : Quinn Co.	14,150
	Sales		14,150
Nov 8	Cost of Goods Sold	9,750
	Merchandise Inventory		9,750
Nov 13	Accounts Payable : Moonlight Co.	56,800
	Merchandise Inventory ( 56,800 x 2%)		1,136
	Cash		55,664
Nov 14	Cash	220,790
	Sales		220,790
Nov 14	Cost of Goods Sold	152,750
	Merchandise Inventory		152,750
Nov 15	Accounts Payable: Papoose Creek Co.	42,750
	Merchandise Inventory $ ( 42,750 - 810) x 2%		838.80
	Cash		41,911.20
Nov 23	Cash	14,150
	Accounts Receivable : Quinn Co.		14,150
Nov 24	Accounts Receivable: Rabel Co.	60,600
	Sales		60,600
Nov 24	Cost of Goods Sold	31,910
	Merchandise Inventory		31,910
Nov 28	Credit Card Expense	3,300
	Cash		3,300
Nov 30	Sales Returns and Allowances	5,980
	Cash		5,980
Nov 30	Merchandise Inventory	3,500
	Cost of Goods Sold		3,500