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 $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.   4 Sold merchandise for cash, $34,100. The cost of the goods sold was $22,080.   5 Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 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., $15,270 with terms n/15. The cost of the goods sold was $8,940.   13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.   14 Sold merchandise with a list price of $229,890 to customers who used VISA and who redeemed $7,500 of pointof- sale coupons. The cost of the goods sold was $153,500.   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., $51,300, terms n/30. The cost of the goods sold was $33,280.   28 Paid VISA service fee of $3,410.   30 Paid Quinn Co. a cash refund of $5,610 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180.   30 During November, printed a coupon with each customer’s sales receipt for $2 off the customer’s next purchase of over $15. The coupons may be redeemed during December. Of the total of 25,000 coupons printed, it is estimated that 55% will be redeemed.   Required: 1. Journalize the November transactions. 2. Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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 $93,000, trade discount 25%, terms FOB destination, 2/10, n/30.
  4 Sold merchandise for cash, $34,100. The cost of the goods sold was $22,080.
  5 Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 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., $15,270 with terms n/15. The cost of the goods sold was $8,940.
  13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
  14 Sold merchandise with a list price of $229,890 to customers who used VISA and who redeemed $7,500 of pointof- sale coupons. The cost of the goods sold was $153,500.
  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., $51,300, terms n/30. The cost of the goods sold was $33,280.
  28 Paid VISA service fee of $3,410.
  30 Paid Quinn Co. a cash refund of $5,610 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180.
  30 During November, printed a coupon with each customer’s sales receipt for $2 off the customer’s next purchase of over $15. The coupons may be redeemed during December. Of the total of 25,000 coupons printed, it is estimated that 55% will be redeemed.
 
Required:
1. Journalize the November transactions.
2. Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

I have 4 more journal lines at the end of the journal. Also, answer this, 2. Assume that as of December 31, 10,400 of the $2-off coupons issued during November had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons.

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Accounting for discounts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education