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 goods sold was $22,600. 5 purchased merchandise on account from papoose creek co., $47,500, terms fob shipping point, 2/10, 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 n/15. the cost of the goods sold was $9,400.

Hi, your question is incomplete however,  i have searched for the full question and it reads as follows :

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Nov.3Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.

4Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.

5Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.

6Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.

8Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.

13Paid Moonlight Co. on account for purchase of November 3, less return of November 6.

14Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.

15Paid Papoose Creek Co. on account for purchase of November 5.

23Received cash on account from sale of November 8 to Quinn Co..

24Sold merchandise on account to Rabel Co. 6,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.

28Paid VISA service fee of $3,540.

30Paid 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.

Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system.

Nov 3

Merchandise $21,250 (debit)

Trade Payable : Moonlight Co. $21,250 (credit)

Nov 4

Cash $37,680 (debit)

Cost of Goods Sold $22,600 (debit)

Sales Revenue $37,680 (credit)

Merchandise $22,600 (credit)

Nov 5

Merchandise $47,500 (debit)

Trade Payable : Papoose Creek Co $47,500 (credit)

Nov 6

Trade Payable : Moonlight Co. $13,500 (debit)

Merchandise $13,500 (credit)

Nov 8

Accounts Receivable : Quinn Co. $15,600 (debit)

Cost of Goods Sold $9,400 (debit)

Sales Revenue $15,600 (credit)

Merchandise $9,400 (credit)

Nov 13

Trade Payable : Moonlight Co. $7,750 (debit)

Discount allowed $155 (credit)

Cash $7,620 (credit)

Nov 14

Cash $236,000 (debit)

Cost of Goods Sold $140,000 (debit)

Sales Revenue $236,000 (credit)

Merchandise $140,000 (credit)

Nov 15

Trade Payable : Papoose Creek Co $47,500 (debit

Discount Allowed $950 (credit)

Cash $46,550 (credit)

Nov 23

Cash $15,600 (debit)

Accounts Receivable : Quinn Co. $15,600 (credit)

Nov 24

Accounts Receivable : Rabel Co.. $56,900 (debit)

Cost of Goods Sold $34,000 (debit)

Sales Revenue $56,900 (credit)

Merchandise $34,000 (credit)

Nov 28

Visa Service Fee $3,540 (debit)

Cash $3,540 (credit)

Nov 3

Sales Revenue $6,000 (debit)

Merchandise  $3,300 (debit)

Accounts Receivable : Quinn Co.  $3,300 (credit)

Cost of Goods Sold $9,400 (credit)

Explanation:

Please Be very careful :

-to exclude trade discount

-to to use perpetual inventory method

- to check if payment falls within the cash discount period

- include freight charges in invoice amount for FOB purchases

See the journal prepared above.

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

answer; tech (a) is correct;