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