Instructions
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 goods 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 merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of
25%) 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 goods sold was
$9,400.
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14 Sold merchandise with a list price of $236,000 to customers who used VISA and who redeemed $8,000
of pointof-sale coupons. The cost of the goods 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 n/30. The cost of the goods sold was
$34,000.
