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 Purchases63,750

Accounts Payable—Moonlight Co.63,750

[$85,000 – ($85,000 × 25%)]

4 Cash37,680

Sales37,680

5 Purchases47,500

Freight In810

Accounts Payable—Papoose Creek Co. 48,310

6 Accounts Payable—Moonlight Co. 13,500

Purchases Returns and Allowances13,500

8 Accounts Receivable—Quinn Co. 15,600

Sales15,600

13 Accounts Payable—Moonlight Co. 50,250

Cash49,245

Purchases Discounts1,005

14 Cash236,000

Sales236,000

15 Accounts Payable—Papoose Creek Co. 48,310

Cash47,360

Purchases Discounts950

23 Cash15,600

Accounts Receivable—Quinn Co.15,600

24 Accounts Receivable—Rabel Co. 56,331

Sales56,331

[$56,900 – ($56,900 × 1%)]

28 Credit Card Expense3,540

Cash3,540

30 Customer Refunds Payable 6,000

Cash6,000