LIST OF ACCOUNT TITLES

Bel, Capital
Bel, Drawings
Accounts Payable
Accounts Receivable
Accrued Expenses
Advertising Expense
Allowance for Bad Debts
Bad Debt expense
Cash
Creditable Input VAT
Depreciation Expense
EC Contributions Payable
Freight-in
Freight-out
Furniture & Fixtures
Gas & Oil Expense
HDMF Premiums Payable
Input VAT
Insurance Expense
Interest Income
Loans Payable
Miscellaneous Expense
Notes Payable
Notes Receivable
Office Equipment
Office Supplies
Office Supplies Expense
Output VAT
Payroll Taxes
PH Premiums Payable
Prepayments
Purchases
Purchase Discounts
Purchase Returns & Allowances
Rent Expense
Repair Equipment
Repairs Expense
Sales Salaries
Salaries Payable
Sales
Sales Discounts
Sales Returns & Allowances
SSS Premiums Payable
Store Equipment
Store Supplies
Store Supplies Expense
Taxes & Licenses Expense
Utilities Payable
Utilties Expense
VAT Payable
Vehicles
Treat the following Financial Transactions as independent scenarios:

1. The Buyer and Seller agreed on the term FOB – Shipping Point, Freight Collect for the freight cost of P12,500 for the sales transactions of P325,000 on Ju
2. The Seller sold merchandise on March 26, 2020 with the list price of P500,000 at trade discount of 10%, 5%. The terms of shipment is FOB – Shipping Poi
3. On January 28, 2020 the Buyer purchased P450,000 worth of inventory at 10% trade discount with a term of 2/10, n/30. The freight cost is P25,000 on FO
4. The term of shipment on the sale of goods on September 28, 2020 for P1,500,000 is FOB – Destination, Freight Collect with freight cost of P225,000. The
5. On September 29, 2020, the Buyer bought P300,000 of inventory at 5% trade discount with the shipping term of FOB – Destination, Freight Prepaid. The s

REQUIRED:
1.  Prepare the journal entries on the Buyer and Seller books for the following:
a. Purchase and sales transactions.
b. Freight transactions.
c. Payment of the transactions.
 transactions of P325,000 on June 22, 2020. The Buyer paid in full on July 2 for the credit term 1/10, n/15.
shipment is FOB – Shipping Point, Freight Prepaid with the freight amounting to P15,000. The Buyer’s credit term is 3/EOM, n/60. The Buyer paid all the accounts on March 31, 202
he freight cost is P25,000 on FOB – Shipping Point, Freight Collect. The Seller collected in full what is due from the Buyer on February 08, 2020.
h freight cost of P225,000. The Seller gave a trade discount of 15%, 5% with a credit term of 3/10, 1/15, n/30. The Seller collected on October 10, 2020.
stination, Freight Prepaid. The shipping cost is P45,000. The Seller gave a credit term of 2/15, n/45. The Buyer paid in full on October 13, 2020.
id all the accounts on March 31, 2020.
 GENERAL JOURNAL

2020 F Debit Credit

6 22 Accounts Receivable 325,000.00
Sales 325,000.00

7 2 Cash 321,750.00
Sales Discounts 3,250.00
Accounts Receivable 325,000.00

3 26 Accounts Receivable 442,500.00

Sales 427,500.00
Cash 15,000.00

3 31 Cash 429,675.00
Sales Discounts 12,825.00
Accounts Receivable 442,500.00

1 28 Accounts Receivable 405,000.00

Sales 405,000.00

2 8 Cash 405,000.00
Accounts Receivable 405,000.00

9 28 Accounts Receivable 1,211,250.00

Sales 1,211,250.00

Freight-out 225,000.00
Accounts Receivable 225,000.00
10 10 Cash 974,137.50
Sales Discounts 12,112.50
Accounts Receivable 986,250.00

9 29 Accounts Receivable 285,000.00

Sales 285,000.00

Freight-out 45,000.00
Cash 45,000.00

10 13 Cash 279,300.00
Sales Discounts 5,700.00
Accounts Receivable 285,000.00
URNAL

Explanation/Computation/Customer Info TRANSACTIONS

Term: 1/10, n/15 1. The Buyer and Seller agreed on the term FOB –
Shipping Point, Freight Collect for the freight cost of
P12,500 for the sales transactions of P325,000 on June 22,
2020. The Buyer paid in full on July 2 for the credit term
1/10, n/15.

Sales 325,000.00 1. The Buyer and Seller agreed on the term FOB –
Less: Discount @ 1% 3,250.00 Shipping Point, Freight Collect for the freight cost of
Collection 321,750.00 P12,500 for the sales transactions of P325,000 on June 22,
2020. The Buyer paid in full on July 2 for the credit term
1/10, n/15.

Trade Discount = 10%, 5% 427500 2. The Seller sold merchandise on March 26, 2020 with
Term: 3/EOM, n/60 the list price of P500,000 at trade discount of 10%, 5%.
The terms of shipment is FOB – Shipping Point, Freight
Prepaid with the freight amounting to P15,000. The
FOB - Shipping Point (expense c/o buyer)
Buyer’s credit term is 3/EOM, n/60. The Buyer paid all
Freight Prepaid (expense c/o seller) the accounts on March 31, 2020.

Sales 427,500.00 2. The Seller sold merchandise on March 26, 2020 with
Less: Discount @ 3% 12,825.00 the list price of P500,000 at trade discount of 10%, 5%.
Add: Freight Cost 15,000.00 The terms of shipment is FOB – Shipping Point, Freight
Prepaid with the freight amounting to P15,000. The
Collection 429,675.00
Buyer’s credit term is 3/EOM, n/60. The Buyer paid all
the accounts on March 31, 2020.

Trade Discount = 10% 405,000.00 3. On January 28, 2020 the Buyer purchased P450,000
Terms: 2/10, n/30 worth of inventory at 10% trade discount with a term of
2/10, n/30. The freight cost is P25,000 on FOB – Shipping
Point, Freight Collect. The Seller collected in full what is
due from the Buyer on February 08, 2020.

Collection of amount due from sales 3. On January 28, 2020 the Buyer purchased P450,000
transaction on January 28 worth of inventory at 10% trade discount with a term of
2/10, n/30. The freight cost is P25,000 on FOB – Shipping
Point, Freight Collect. The Seller collected in full what is
due from the Buyer on February 08, 2020.

Trade Discount = 15%, 5% 1,211,250.00 4. The term of shipment on the sale of goods on
Term: 3/10, 1/15, n/30 September 28, 2020 for P1,500,000 is FOB – Destination,
Freight Collect with freight cost of P225,000. The Seller
gave a trade discount of 15%, 5% with a credit term of
FOB Destination (expense c/o seller)
3/10, 1/15, n/30. The Seller collected on October 10, 2020.
Freight Collect ( expense c/o buyer)
 September 28, 2020 for P1,500,000 is FOB – Destination,
Freight Collect with freight cost of P225,000. The Seller
gave a trade discount of 15%, 5% with a credit term of
3/10, 1/15, n/30. The Seller collected on October 10, 2020.

Sales 1,211,250.00 4. The term of shipment on the sale of goods on

Less: Discount @ 3% 12,112.50 September 28, 2020 for P1,500,000 is FOB – Destination,
Net Sales 1,199,137.50 Freight Collect with freight cost of P225,000. The Seller
gave a trade discount of 15%, 5% with a credit term of
Less: Freight Cost 225,000.00
3/10, 1/15, n/30. The Seller collected on October 10, 2020.
Collection 974,137.50

Trade Discount = 5% 285,000.00 5. On September 29, 2020, the Buyer bought P300,000 of
Term: 2/15, n/45 inventory at 5% trade discount with the shipping term of
FOB – Destination, Freight Prepaid. The shipping cost is
P45,000. The Seller gave a credit term of 2/15, n/45. The
FOB Destination (expense c/o seller)
Buyer paid in full on October 13, 2020.
Freight Prepaid (expense c/o seller)

Net Sales 285,000.00 5. On September 29, 2020, the Buyer bought P300,000 of
Less: Discount @ 2% 5,700.00 inventory at 5% trade discount with the shipping term of
Collection 279,300.00 FOB – Destination, Freight Prepaid. The shipping cost is
P45,000. The Seller gave a credit term of 2/15, n/45. The
Buyer paid in full on October 13, 2020.

Gross Sales 427,500.00

Less: Discount @ 3% 12,825.00
Net Sales 414,675.00
Add: Freight Cost 15,000.00
Collection 429,675.00
 GENERAL JOURNAL

2020 F Debit
e term FOB – 6 22 Purchases 325,000.00
e freight cost of Accounts Payable
P325,000 on June 22,
2 for the credit term
Freight-in 12,500.00
Cash

e term FOB – 7 2 Accounts Payable 325,000.00

e freight cost of Cash
P325,000 on June 22, Purchase Discounts
2 for the credit term

arch 26, 2020 with 3 26 Purchases 427,500.00

ount of 10%, 5%. Freight-in 15,000.00
ping Point, Freight Accounts Payable
o P15,000. The
The Buyer paid all

arch 26, 2020 with 3 31 Accounts Payable 442,500.00

ount of 10%, 5%. Cash
ping Point, Freight Purchase Discounts
o P15,000. The
The Buyer paid all

rchased P450,000 1 28 Purchases 405,000.00

ount with a term of Accounts Payable
on FOB – Shipping
ected in full what is
Freight-in 25,000.00
2020.
Cash

rchased P450,000 2 8 Accounts Payable 405,000.00

ount with a term of Cash
on FOB – Shipping
ected in full what is
2020.

f goods on 9 28 Purchases 1,211,250.00

FOB – Destination, Accounts Payable
225,000. The Seller
h a credit term of
Accounts Payable 225,000.00
n October 10, 2020.
Cash
f goods on 10 10 Accounts Payable 986,250.00
FOB – Destination, Cash
225,000. The Seller Purchase Discounts
h a credit term of
n October 10, 2020.

bought P300,000 of 9 29 Purchases 285,000.00

the shipping term of Accounts Payable
The shipping cost is
m of 2/15, n/45. The
0.

bought P300,000 of 10 13 Accounts Payable 285,000.00

the shipping term of Cash
The shipping cost is Purchase Discounts
m of 2/15, n/45. The
0.
GENERAL JOURNAL

Credit Explanation/Computation/Supplier Info TRANSACTIONS

Term: 1/10, n/15 1. The Buyer and Seller agreed on the term FOB –
325,000.00 Shipping Point, Freight Collect for the freight cost of
P12,500 for the sales transactions of P325,000 on Jun
2020. The Buyer paid in full on July 2 for the credit t
FOB - shipping point (expense c/o buyer)
1/10, n/15.
12,500.00 Freight Collect (expense c/o buyer)

Purchases 325,000.00 1. The Buyer and Seller agreed on the term FOB –
321,750.00 Less: Discount @ 1% 3,250.00 Shipping Point, Freight Collect for the freight cost of
3,250.00 Payment 321,750.00 P12,500 for the sales transactions of P325,000 on Jun
2020. The Buyer paid in full on July 2 for the credit t
1/10, n/15.

Trade Discount: 10%, 5% 427,500.00 2. The Seller sold merchandise on March 26, 2020 wit
Term: 3/EOM, n/60 the list price of P500,000 at trade discount of 10%, 5%
442,500.00 The terms of shipment is FOB – Shipping Point, Frei
Prepaid with the freight amounting to P15,000. The
FOB Shipping Point (expense c/o buyer)
Buyer’s credit term is 3/EOM, n/60. The Buyer paid a
Freight Prepaid (Expense c/o seller) the accounts on March 31, 2020.

Purchases 427,500.00 2. The Seller sold merchandise on March 26, 2020 wit
429,675.00 Less: Discount @ 3% 12,825.00 the list price of P500,000 at trade discount of 10%, 5%
12,825.00 Add: Freight Cost 15,000.00 The terms of shipment is FOB – Shipping Point, Frei
Prepaid with the freight amounting to P15,000. The
Payment 429,675.00
Buyer’s credit term is 3/EOM, n/60. The Buyer paid a
the accounts on March 31, 2020.

Trade Discount = 10% 405,000.00 3. On January 28, 2020 the Buyer purchased P450,00
405,000.00 Term: 2/10, n/30 worth of inventory at 10% trade discount with a term
2/10, n/30. The freight cost is P25,000 on FOB – Shipp
Point, Freight Collect. The Seller collected in full wha
FOB - Shipping Point (expense c/o buyer)
due from the Buyer on February 08, 2020.
25,000.00 Freight Collect (expense c/o buyer)

Payment for amount due from purchase 3. On January 28, 2020 the Buyer purchased P450,00
405,000.00 transaction on January 28 worth of inventory at 10% trade discount with a term
2/10, n/30. The freight cost is P25,000 on FOB – Shipp
Point, Freight Collect. The Seller collected in full wha
due from the Buyer on February 08, 2020.

Trade Discount = 15%, 5% 1,211,250.00 4. The term of shipment on the sale of goods on
1,211,250.00 Term: 3/10, 1/15, n/30 September 28, 2020 for P1,500,000 is FOB – Destinat
Freight Collect with freight cost of P225,000. The Sel
gave a trade discount of 15%, 5% with a credit term
FOB Destination (expense c/o seller)
3/10, 1/15, n/30. The Seller collected on October 10, 2
225,000.00 Freight Collect (expense c/o buyer)
 September 28, 2020 for P1,500,000 is FOB – Destinat
Freight Collect with freight cost of P225,000. The Sel
gave a trade discount of 15%, 5% with a credit term
3/10, 1/15, n/30. The Seller collected on October 10, 2

Purchases 1,211,250.00 4. The term of shipment on the sale of goods on

974,137.50 Less: Discounts @ 1% 12,112.50 September 28, 2020 for P1,500,000 is FOB – Destinat
12,112.50 Net Purchases 1,199,137.50 Freight Collect with freight cost of P225,000. The Sel
gave a trade discount of 15%, 5% with a credit term
Less: Freight Cost 225,000.00
3/10, 1/15, n/30. The Seller collected on October 10, 2
Payment 974,137.50

Trade Discount = 5% 285,000.00 5. On September 29, 2020, the Buyer bought P300,00
285,000.00 Term: 2/15, n/45 inventory at 5% trade discount with the shipping term
FOB – Destination, Freight Prepaid. The shipping co
P45,000. The Seller gave a credit term of 2/15, n/45. T
Buyer paid in full on October 13, 2020.

Purchases 285,000.00 5. On September 29, 2020, the Buyer bought P300,00

279,300.00 Less: Discount @ 2% 5,700.00 inventory at 5% trade discount with the shipping term
5,700.00 Payment 279,300.00 FOB – Destination, Freight Prepaid. The shipping co
P45,000. The Seller gave a credit term of 2/15, n/45. T
Buyer paid in full on October 13, 2020.
reed on the term FOB –
llect for the freight cost of
ctions of P325,000 on June 22,
l on July 2 for the credit term

reed on the term FOB –

llect for the freight cost of
ctions of P325,000 on June 22,
l on July 2 for the credit term

dise on March 26, 2020 with

trade discount of 10%, 5%.
OB – Shipping Point, Freight
mounting to P15,000. The
OM, n/60. The Buyer paid all
2020.

dise on March 26, 2020 with

trade discount of 10%, 5%.
OB – Shipping Point, Freight
mounting to P15,000. The
OM, n/60. The Buyer paid all
2020.

Buyer purchased P450,000

trade discount with a term of
is P25,000 on FOB – Shipping
Seller collected in full what is
ruary 08, 2020.

Buyer purchased P450,000

trade discount with a term of
is P25,000 on FOB – Shipping
Seller collected in full what is
ruary 08, 2020.

the sale of goods on

500,000 is FOB – Destination,
cost of P225,000. The Seller
%, 5% with a credit term of
collected on October 10, 2020.
 the sale of goods on
500,000 is FOB – Destination,
cost of P225,000. The Seller
%, 5% with a credit term of
collected on October 10, 2020.

the Buyer bought P300,000 of

ount with the shipping term of
Prepaid. The shipping cost is
credit term of 2/15, n/45. The
er 13, 2020.

the Buyer bought P300,000 of

ount with the shipping term of
Prepaid. The shipping cost is
credit term of 2/15, n/45. The
er 13, 2020.