Instructions
Chart of Accounts
General Journal
perpetual inventory system
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 $94,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4 Sold merchandise for cash, $37,230. The cost of the goods sold was $22,500.
5 Purchased merchandise on account from Papoose Creek Co., $48,450, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice.
6 Returned merchandise with an invoice amount of $15,000 ($20,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co.
8 Sold merchandise on account to Quinn Co., $15,810 with terms n/15. The cost of the goods sold was $10,020.
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
142 Prepaid Insurance
525 Depreciation Expense-Office Equipment
