Inting for Merchandising Businesses

PR $6-3$A Sales$-$related and purchase$-$related transactions using perpetual

$08.2$

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 $$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$.,$ $$47,500,$ terms FOB shipping point, $\frac{2}{10},\frac{n}{30},$ with prepaid freight of $$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$.,$ $$15,600$ with terms $\frac{n}{15}.$ The cost of the merchandise sold was $$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$.,$ $$56,900,$ terms $\frac{1}{10},\frac{n}{30}.$ The cost of the merchandise sold was $$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.$