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    Week 4 5 ULOc Lets Analyze Activities Solution

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    emem resuento
    The document contains examples of journal entries for various merchandising transactions with different shipping terms: 1) Entries are shown for transactions with terms of FOB shipping point and FOB destination, with freight being paid by both the seller and buyer. 2) A second activity provides additional examples of entries for purchases, sales, returns, expenses and payment of accounts for a merchandising business over the month of August. 3) Journal entries are recorded for transactions including sales on account, purchases on account, payment of freight charges, returns, expenses, payment of accounts and collection of accounts.

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    Week 4 5 ULOc Lets Analyze Activities Solution

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    emem resuento
    265 views3 pages
    The document contains examples of journal entries for various merchandising transactions with different shipping terms: 1) Entries are shown for transactions with terms of FOB shipping point and FOB destination, with freight being paid by both the seller and buyer. 2) A second activity provides additional examples of entries for purchases, sales, returns, expenses and payment of accounts for a merchandising business over the month of August. 3) Journal entries are recorded for transactions including sales on account, purchases on account, payment of freight charges, returns, expenses, payment of accounts and collection of accounts.

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    The document contains examples of journal entries for various merchandising transactions with different shipping terms: 1) Entries are shown for transactions with terms of FOB shipping point and FOB destination, with freight being paid by both the seller and buyer. 2) A second activity provides additional examples of entries for purchases, sales, returns, expenses and payment of accounts for a merchandising business over the month of August. 3) Journal entries are recorded for transactions including sales on account, purchases on account, payment of freight charges, returns, expenses, payment of accounts and collection of accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    265 views3 pages

    Week 4 5 ULOc Lets Analyze Activities Solution

    Uploaded by

    emem resuento
    The document contains examples of journal entries for various merchandising transactions with different shipping terms: 1) Entries are shown for transactions with terms of FOB shipping point and FOB destination, with freight being paid by both the seller and buyer. 2) A second activity provides additional examples of entries for purchases, sales, returns, expenses and payment of accounts for a merchandising business over the month of August. 3) Journal entries are recorded for transactions including sales on account, purchases on account, payment of freight charges, returns, expenses, payment of accounts and collection of accounts.

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    WEEK 4-5 ULOc Let’s Analyze

    Activity 1 – Transportation Costs

    A. Shipping terms are F.O.B. shipping point, freight collect. Pascual Co. paid the shipping costs on June 17 and
    remitted P5,880 on June 24.
    1. Accounts Receivable 6,000
    Sales 6,000
    To record sales on account to Pascual Co.

    Cash 5,880
    Sales discount (6,000 x 2%) 120
    Accounts Receivable 6,000
    Collected cash from Pascual Co. including discount.

    2. Purchases 6,000
    Accounts Payable 6,000
    Purchased merchandise on account from Vergara Co.

    Freight in 600
    Cash 600
    Paid for transportation cost.

    Accounts Payable 6,000


    Purchase discount (6,000 x 2%) 120
    Cash 5,880
    Paid accounts due to Vergara Co.

    B. Shipping terms are F.O.B. destination, freight prepaid. Vergara Co. paid the shipping costs on June 16. Pascual Co.
    remitted P5,880 on June 24.

    1. Accounts Receivable 6,000


    Sales 6,000
    To record sales on account to Pascual Co.

    Freight out 600


    Cash 600
    Paid for transportation cost.

    Cash 5,880
    Sales discount (6,000 x 2%) 120
    Accounts Receivable 6,000
    Collected cash from Pascual Co. including discount.

    2. Purchases 6,000
    Accounts Payable 6,000
    Purchased merchandise on account from Vergara Co.

    Accounts Payable 6,000


    Purchase discount (6,000 x 2%) 120
    Cash 5,880
    Paid accounts due to Vergara Co.
    C. Shipping terms are F.O.B. shipping point, freight prepaid. Vergara Co. paid the shipping costs on June 16 and
    added the P600 cost to the invoice sent to Pascual Co. Pascual Co. remitted P6,480 on June 24.

    1. Accounts Receivable 6,600


    Sales 6,000
    Cash 600
    To record sales on account to Pascual Co. and payment for freight.

    Cash 6,480
    Sales discount (6,000 x 2%) 120
    Accounts Receivable 6,600
    Collected cash from Pascual Co. including discount and payment for freight.

    2. Purchases 6,000
    Freight in 600
    Accounts Payable 6,600
    Purchased merchandise on account from Vergara Co., FOB shipping point,
    freight prepaid.

    Accounts Payable 6,600


    Purchase discount (6,000 x 2%) 120
    Cash 6,480
    Paid accounts due to Vergara Co. including freight payment.

    D. Shipping terms are F.O.B. destination, freight collect. Pascual Co. paid the shipping costs on June 17 and deducted
    the P600 from the amount owed to Vergara Co. A copy of the freight bill to Vergara Co. was provided with the June
    24 cash remittance. Pascual Co. remitted P5,280 on June 24.

    1. Accounts Receivable 5,400


    Freight out 600
    Sales 6,000
    To record sales on account to Pascual Co. and recognition of freight.

    Cash 5,280
    Sales discount (6,000 x 2%) 120
    Accounts Receivable 5,400
    Collected cash from Pascual Co. including discount.

    2. Purchases 6,000
    Accounts Payable 6,000
    Purchased merchandise on account from Vergara Co.

    Accounts Payable 600


    Cash 600
    Paid for freight charges in lieu of seller.

    Accounts Payable 5,400


    Purchase discount (6,000 x 2%) 120
    Cash 5,280
    Paid accounts due to Vergara Co.
    Activity 2 – Journalizing Merchandising Transactions

    Aug 1 Accounts Receivable 21,000


    Sales 21,000
    Sold merchandise to O. Lacierda Trading on account, terms n/30.

    3 Purchases 38,000
    Accounts Payable 38,000
    Bought merchandise from R. Cabellon Stores, terms n/30.

    5 Transportation In/Freight In 290


    Cash 290
    Paid for freight charges.

    6 Supplies 6,360
    Accounts Payable 6,360
    Bought supplies on account.

    8 Purchases 36,000
    Transportation In/Freight In 200
    Accounts Payable 36,200
    Bought merchandise from Pagadian Company, terms n/30.

    12 Accounts Payable 6,000


    Purchase returns and allowances 6,000
    Returned merchandise purchased from R. Cabellon Stores.

    15 Accounts Receivable 12,000


    Sales 12,000
    Sold merchandise to Columban Stores on account, terms n/30.

    16 Accounts Payable 2,000


    Supplies 2,000
    Returned supplies purchased from Ipil Supplies.

    17 Cash 10,000
    Sales 10,000
    Sold merchandise for cash.

    18 Sales returns and allowances 2,000


    Accounts Receivable 2,000
    Merchandise returned from customer.

    24 Accounts Payable 32,000


    Cash (38,000-6,000) 32,000
    Payment of accounts to R. Cabellon Stores.

    27 Cash (21,000 – 2,000) 19,000


    Accounts Receivable 19,000
    Collected accounts from O. Lacierda Trading.

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