On June 1, 2019, ELENO BURAY, JR. Forest Products Sol Sold Merchandise With A P120,000 List Price

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On June 1, 2019, ELENO BURAY, JR.

Forest Products sol

sold merchandise with a P120,000 list price.

Trade Discount Credit Terms Date Paid


a 30% 2/10, n/30 June 8

b 10%, 25% 1/10, n/30 June 15

c 15%, 10% 2/10, n/30 June 11

d 20% 1/15, n/30 June 14

e 40% n/30 June 28

REQUIRED:

For each of the sales terms, determine the following:

1 The amount recorded as a SALE


2 The amount of CASH RECEIVED.

Additional Requirements:

Prepare the journal entries at the date of purchase and pa

Record on the point of view of the buyer & seller


0
FOREST PRODUCTS

COMPUTATION OF THE FOLLOWING…

AMOUNT RECORDED AS A SALE


(INVOICE PRICE) a b c

List price 120,000 120,000 120,000

Less: 1st Trade Discount 0.30 0.10 0.15

Trade Discount 36,000 12,000 18,000

84,000 108,000 102,000

Less: 2nd Trade Discount 0.25 0.10

Trade Discount 27,000 10,200

Invoice Price 84,000 81,000 91,800

AMOUNT CASH RECEIVED

Invoice Price 84,000 81,000 91,800

Less: Cash Discount 0.02 0.02

CASH Discount 1,680 0 1,836

Amount received/paid 82,320 81,000 89,964


WRITE YOUR FINAL ANSWERS HERE

SELLER'S BOOKS

DATE ACCOUNT TITLES & EXPLANATION


A Date of Sale
Accounts Receivable
d e

120,000 120,000

0.20 0.40 DATE OF COLLECTION

24,000 48,000 Cash

96,000 72,000 Sales Discount

96,000 72,000 B. Date of Sale


Accounts Receivable

96,000 72,000

0.01 DATE OF COLLECTION

960 0 Cash

95,040 72,000
C. Date of sale

Accounts Receivable

DATE OF COLLECTION

Cash

Sales Discount

D. Date of Sale

Accounts Receivable

DATE OF COLLECTION

Cash

Sales Discount
E. Date of Sale

Accounts Receivable

DATE OF COLLECTION

Cash
R FINAL ANSWERS HERE

SELLER'S BOOKS

ACCOUNT TITLES & EXPLANATION P.R. DEBIT CREDIT

Accounts Receivable 84,000.00


Sales 84,000.00

OLLECTION

82,320.00

Sales Discount 1,680.00

Accounts Receivable 84,000.00

Accounts Receivable 81,000.00

Sales 81,000.00

OLLECTION

81,000.00

Accounts Receivable 81,000.00


Accounts Receivable 91,800.00

Sales 91,800.00

OLLECTION

89,964.00

Sales Discount 1,836.00

Accounts Receivable 91,800.00

Accounts Receivable 96,000.00

Sales 96,000.00

OLLECTION

95,040.00

Sales Discount 960.00


Accounts Receivable 96,000.00

Accounts Receivable 72,000.00

Sales 72,000.00

OLLECTION

72,000.00

Accounts Receivable 72,000.00


WRITE YOUR FINAL ANSWERS HERE

BUYER'S BOOKS

DATE ACCOUNT TITLES & EXPLANATION P.R.


A. Date of Purchase
Purchases
Accounts Payable

DATE OF PAYMENT

Accounts Payable

Cash

Discount

B. Date of Purchase

Purchases

Accounts Payable

DATE OF PAYMENT

Accounts Payable

Cash
C. Date of Purchase

Purchases

Accounts Payable

Date of Payment

Accounts Payable

Cash

Discount

D. Date of Purchase

Purchases

Accounts Payable

Date of Payment

Accounts Payable

Cash
Discount

E. Date of Purchase

Purchases

Accounts Payable

Date of Payment

Accounts Payable

Cash
WRITE YOUR FINAL ANSWERS HERE

OKS SELLER'S POINT O

DEBIT CREDIT DATE ACCOUNT TITLES & EXP


A. Date of SALE
84,000.00 Accounts Receivable
84,000.00

84,000.00 Cost of Sales (84,000*


82,320.00

1,680.00

DATE OF COLLECTION
81,000.00 Cash
81,000.00 Sales Discount

81,000.00

81,000.00 ASSUME THAT P2,00


DATE OF RETURN
Sales Returns and Allo
91,800.00

91,800.00

Merchandise Inventory

91,800.00

89,964.00 DATE OF COLLECTION


1,836.00 Cash
Sales Discuount

96,000.00

96,000.00

96,000.00

95,040.00
960.00

72,000.00

72,000.00

72,000.00

72,000.00
R FINAL ANSWERS HERE

SELLER'S POINT OF VIEW-PERPETUAL ENTRIES for A

ACCOUNT TITLES & EXPLANATION P.R. DEBIT


te of SALE
Accounts Receivable 84,000.00
Sales
Sales on account.

Cost of Sales (84,000*60%) 50,400.00


Merchandise Inventory
Cost of goods sold.
Presume: Gross profit rate is 40%
OF COLLECTION
Cash 82,320.00
Sales Discount 1,680.00
Accounts Receivable
Full collection.

ASSUME THAT P2,000 WORTH OF GOODS WERE RE


OF RETURN
Sales Returns and Allowances 2,000.00
Accounts Receivable

Merchandise Inventory (2000x60%) 1,200.00


Cost of Sales

OF COLLECTION
Cash 80,380.00
Sales Discuount 1,640.00
Accounts Receivable
Full collection.
or A

CREDIT

84,000.00

50,400.00

84,000.00

WERE RETURN
2,000.00

1,200.00

Invoice price 84,000.00

Less: Returns 2,000.00

82,000.00 Net invoice 82,000.00

Less: Discount 2% 1,640.00

Cash collected 80,360.00


For each of the following Mary Paz Abad Retailers purchases, assume rhar
credit terms are 2/10, n/30 and that any credit memorandum was issued and
known before Mary Paz Abad Retailers made the payments.

Required:

1
Determine the cash discount available.
2 Determine the cash remitted if payment is made within the discount
period.
3
Prepare the entries on the point of view of (a) SELLER & (b) BUYER

Shipping Terms Prepaid Freight


Purchases F.O.B. by the Seller
a 12,000.00 Shipping point 1,000.00
b 24,000.00 Destination 2,400.00
c 28,000.00 Shipping point
d 40,000.00 Shipping point 3,000.00
rchases, assume rhar
andum was issued and WRITE YOUR FINAL ANSWER
yments.

COMPUTATION

CASH DISCOUNT AVAILABLE


e within the discount
1 Purchases

ELLER & (b) BUYER Less: Credit Memo

Net Purchases
Credit Memo
(Returns) Discount (2% discount)

3,000.00
2,000.00 CASH REMITTED

4,000.00 2 Net Purchases

- Less: 2% Discount

Net of Discount

Add: FOB Shipping, F. Prepaid

Cash Remitted
TE YOUR FINAL ANSWERS HERE WRITE

COMPUTATION

A B C D DATE

A. Date of Sale

Date of Collection

Prepaid

B Date of Sale
B. Date of Collection

C Date of Sale
C. Date of Collection

D. Date of Sale

Date of Collection
WRITE YOUR FINAL ANSWERS HERE

SELLER'S BOOKS
ACCOUNT TITLES & EXPLANATION P.R. DEBIT

Date of Sale

te of Collection

Date of Sale
Date of Collection

Date of Sale
Date of Collection

Date of Sale

te of Collection
WRITE YOUR FINAL ANSWERS HERE

BUYER'S BOOKS
CREDIT DATE ACCOUNT TITLES & EXPLANATIONS
P.R.

A. Date of Purchase

Date of Payment

B Date of Purchase
B. Date of Payment

C Date of Purchase
C. Date of Payment

D. Date of Purchase

Date of Payment
ANSWERS HERE

BOOKS
DEBIT CREDIT
On June 16, 2016, Ilano sold merchandise to Pascual for P6,000, Terms:
2/10, n/30. Shipping costs were P600. Pascual received the goods and
Ilano's invoice on June 17. One June 24, Pascual sent the payment to Ilano,
which Ilano received on June 25. BothIlano and Pascual use the periodic
inventory system. The following are the several arrangements:
WRITE YOUR FINAL ANSWERS HERE

BOOKS OF ILANO (SELLER)


DATE ACCOUNT TITLES & EXPLANATIONS P.R.

June 16

23

June 16

25

C
June 16

25

June 16
WRITE YOUR FINAL ANSWERS HERE

O (SELLER) BOOKS
DEBIT CREDIT DATE ACCOUNT TITLES & EXP

June 17

24

June 17

24

C
June 17

24

June 17
ANSWERS HERE

BOOKS OF PASCUAL (BUYER)


ACCOUNT TITLES & EXPLANATIONS P.R. DEBIT
CREDIT
WRITE YOUR FINAL ANSWERS HERE

PERIODIC INVENTORY SYSTEM

DATE ACCOUNT TITLES & EXPL P.R. DEBIT

Oct 7

10
13

14

17

18
19

20

21

24
WRITE YOUR FINAL ANSWERS HERE

PERPETUAL INVENTORY SYSTEM


Assume that the COST is 60% of Sales
CREDIT DATE ACCOUNT TITLES & EXPLANATIONS P.R.

Octorbe 7

10
13

14

17

18
19

20

21

24
M
Sales
DEBIT CREDIT

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