The following were selected from among the transactions completed by Babcock Company during November of the current year:

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 $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.
11. Sold merchandise on account to Quinn Co., list price $24,000, trade discount 35%, terms 1/10, n/30. 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 and discount.
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, less discount.
21. Received cash on account from sale of November 11 to Quinn Co., less discount.
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. Received merchandise returned by Rabel Co. from sale on November 24, $8,400. The cost of the returned merchandise was $5,000.

Instructions
Journalize the transactions.


Answer:














































Nov. 3 Merchandise Inventory 63,750
Accounts Payable—Moonlight Co. 63,750
[$85,000 – ($85,000 × 25%)] = $63,750.
4 Cash 37,680
Sales 37,680
4 Cost of Merchandise Sold 22,600
Merchandise Inventory 22,600
5 Merchandise Inventory 48,310
Accounts Payable—Papoose Creek Co. 48,310
6 Accounts Payable—Moonlight Co. 13,500
Merchandise Inventory 13,500
11 Accounts Receivable—Quinn Co. 15,600
Sales 15,600
[$24,000 – ($24,000 × 35%)] = $15,600.
11 Cost of Merchandise Sold 9,400
Merchandise Inventory 9,400
13 Accounts Payable—Moonlight Co. 50,250
Cash 49,245
Merchandise Inventory 1,005
14 Cash 236,000
Sales 236,000
14 Cost of Merchandise Sold 140,000
Merchandise Inventory 140,000
15 Accounts Payable—Papoose Creek Co. 48,310
Cash 47,360
Merchandise Inventory 950
21 Cash 15,444
Sales Discounts 156
Accounts Receivable—Quinn Co. 15,600
Nov. 24 Accounts Receivable—Rabel Co. 56,900
Sales 56,900
24 Cost of Merchandise Sold 34,000
Merchandise Inventory 34,000
28 Credit Card Expense 3,540
Cash 3,540
30 Sales Returns and Allowances 8,400
Accounts Receivable—Rabel Co. 8,400
30 Merchandise Inventory 5,000
Cost of Merchandise Sold 5,000

Selected transactions for Babcock Company during November of the current year are listed in Problem 6-3A.

Selected transactions for Babcock Company during November of the current year are listed in Problem 6-3A.

Instructions
Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system.


Answer:























Nov. 3 Purchases 63,750
Accounts Payable—Moonlight Co. 63,750
[$85,000 – ($85,000 × 25%)] = $63,750.
4 Cash 37,680
Sales 37,680
5 Purchases 47,500
Freight In 810
Accounts Payable—Papoose Creek Co. 48,310
6 Accounts Payable—Moonlight Co. 13,500
Purchases Returns and Allowances 13,500
11 Accounts Receivable—Quinn Co. 15,600
Sales 15,600
[$24,000 – ($24,000 × 35%)] = $15,600.
13 Accounts Payable—Moonlight Co. 50,250
Cash 49,245
Purchases Discounts 1,005
14 Cash 236,000
Sales 236,000
15 Accounts Payable—Papoose Creek Co. 48,310
Cash 47,360
Purchases Discounts 950
21 Cash 15,444
Sales Discounts 156
Accounts Receivable—Quinn Co. 15,600
24 Accounts Receivable—Rabel Co. 56,900
Sales 56,900
28 Credit Card Expense 3,540
Cash 3,540
30 Sales Returns and Allowances 8,400
Accounts Receivable—Rabel Co. 8,400



Selected transactions for Capers Company during October of the current year are listed in Problem 6-1A.

Instructions
Journalize the entries to record the transactions of Capers Company for October using the periodic inventory system.


Answer:































Oct. 1 Purchases 14,448
Accounts Payable—UK Imports Co. 14,448
3 Purchases 9,950
Freight In 220
Accounts Payable—Hoagie Co. 10,170
4 Purchases 13,650
Accounts Payable—Taco Co. 13,650
6 Accounts Payable—Taco Co. 4,550
Purchases Returns and Allowances 4,550
13 Accounts Payable—Hoagie Co. 10,170
Cash 9,971
Purchases Discounts 199
14 Accounts Payable—Taco Co. 9,100
Cash 8,918
Purchases Discounts 182
19 Purchases 27,300
Accounts Payable—Veggie Co. 27,300
19 Freight In 400
Cash 400
20 Purchases 22,000
Accounts Payable—Caesar Salad Co. 22,000
30 Accounts Payable—Caesar Salad Co. 22,000
Cash 21,780
Purchases Discounts 220
31 Accounts Payable—UK Imports Co. 14,448
Cash 14,448
31 Accounts Payable—Veggie Co. 27,300
Cash 27,300