The following were selected from among the transactions completed by Babcock Com
ID: 2448402 • Letter: T
Question
The following were selected from among the transactions completed by Babcock Company during November of the current year. Journalize the transactions (Using periodic inventory)
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. 8. Sold merchandise on account to Quinn Co., $15,600 with terms n/15. 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. 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. 23. Received cash on account from sale of November 8 to Quinn Co. 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. Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.Explanation / Answer
Ans) No. Particulars Debit Credit 3-Nov Purchases Account Dr $ 85,000 To Moonlight Co $ 63,750 To Discount received account $ 21,250 (Being purchases from moonlight co ) 4-Nov Cash Account Dr $ 37,680 To Sales Account $ 37,680 (Being Cash sales) 5-Nov Purchases Account Dr $ 46,690 Freight Charges Account Dr $ 810 To Papoose Creck & Co $ 47,500 (Being purchases of Merchandise) 6-Nov Moonlight Co Dr $ 13,500 Discounte received Account $ 4,500 To Purchases return Account $ 18,000 (Being Purchases return amount 0f 18000) 8-Nov Quinn Co Account Dr $ 15,600 To Sales Account $ 15,600 (Being Credit sales account) 13-Nov Moonlight Co Dr $ 50,250 To Cash Account $ 49,245 To Discount received Account $ 1,005 (Being Discount received from the Moonlight) 14-Nov Debitors Account Dr $ 236,000 To Sales Account Dr $ 236,000 (Being merchandise Sales ) 15-Nov Cash Account Dr $ 46,550 Discount Received Account Dr $ 950 To Papoose Creck & Co $ 47,500 (Being cash paid to papoose with in the discount period) 23-Nov Cash Account Dr $ 15,600 To Quinn Co Account $ 15,600 (Being Cash received form the Quinn Co) 24-Nov Rabel Co Account Dr $ 56,900 To Sales Account $ 56,900 (Being Sales to Rabel co on account ) 28-Nov Visa expense account dr $ 3,540 To Cash Account $ 3,540 (Being Visa expenses are paid to employess) 30-Nov Sales Return Account Dr $ 6,000 To Quinn Co Account $ 6,000 (Being Sales Return maid by Quinn Co ) 30-Nov Quinn Co Account Dr $ 6,000 To Cash Account $ 6,000 (Being Cash paid to Quinn Co ) Papoose Creck & Co Particulars Amount Particulars Amount To Discount $ 950 By Purchases $ 47,500 To Cash Account $ 46,550 $ 47,500 $ 47,500 Moonlight Particualrs Amount Particualrs Amount To Purchases Return $ 13,500 By Purchase $ 63,750 $ 50,250 $ 63,750 $ 63,750 Papoose Creck & Co Particulars Amount Particulars Amount To Discount $ 950 By Purchases $ 47,500 To Cash Account $ 46,550 $ 47,500 $ 47,500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.