Sales-related and purchase-related transactions using periodic inventory system.
ID: 2422894 • Letter: S
Question
Sales-related and purchase-related transactions using periodic inventory system. Instructions Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system:
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. Purchasedmerchandise on account from PapooseCreekCo.,$47,500,termsFOB 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 $3,300
Explanation / Answer
JOURNAL ENTRIES UNDER PERIODIC INVENTORY SYSTEM:
__________________________________________________________________________________________
DATE PARTICULARS DEBIT($) CREDIT($)_________
To Sales a/c 15,600
Nov. 13 Moon light Co. a/c 50,250
Cash a/c 49,245
Discounts a/c 1005
Nov 14 Bank a/c 236,000
Sales a/c 236,000
Nov. 15 PapooseCreek Co. a/c 47,500
Cash a/c 46,550
Discount a/c 950
Nov 23 Cash a/c 15,600
To Quinn a/c 15,600
Nov 24 Rabel Co. a/c 56,900
To sales a/c 56,900
Nov 24 VISA service fees a/c 3,540
Cash a/c 3,540
Nov.30 Quinn Co. a/c 6,000
Cash a/c 6,000
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