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Activity 12.3 Sales Transactions A. Transactions Perpetual System

The document describes several sales transactions recorded using both a perpetual and periodic inventory system. It provides journal entries for sales, cash receipts, sales returns and allowances, and sales discounts. Key details include a sale on account for $500,000 with payment terms of 2/10, n/30, an allowance given for $27,000, and final payment received on December 13 for $463,540 with a $9,460 discount. Under the periodic system, entries are shown for a $180,000 cash sale, $650,000 sale on account, $90,000 returned merchandise, and $560,000 collected from accounts receivable with a $11,200 discount.

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Donna Lyn Boncodin
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115 views

Activity 12.3 Sales Transactions A. Transactions Perpetual System

The document describes several sales transactions recorded using both a perpetual and periodic inventory system. It provides journal entries for sales, cash receipts, sales returns and allowances, and sales discounts. Key details include a sale on account for $500,000 with payment terms of 2/10, n/30, an allowance given for $27,000, and final payment received on December 13 for $463,540 with a $9,460 discount. Under the periodic system, entries are shown for a $180,000 cash sale, $650,000 sale on account, $90,000 returned merchandise, and $560,000 collected from accounts receivable with a $11,200 discount.

Uploaded by

Donna Lyn Boncodin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Answers:

Activity 12.3 Sales Transactions


A.
Transactions Perpetual System
Dec 3 Wheeler Company sold P500,00 of Accounts Receivable P 500,000
merchandise to Hashmi Co., terms Sales P 500,000
2/10,n/30, FOB shipping point. The cost of
merchandise sold was P 350,000. Cost of Sales P 350,000
Merchandise Inventory P 350,000
Dec 8 Hashmi Co. was granted on allowance of Sales returns and allowances P 27,000
P27,000 for merchandise purchased on Account Receivable P 27,000
December 3.
Merchandise Inventory P 350,000
Cost of Sales P 350,000
Dec 13 Wheeler company received the balance Cash P 463,540
due from Hashmi Co.. Sales discount P 9, 460
Account Receivable P 473, 000
B.
Transaction Journal Entry
January 2 Assume that Wheeler company Cash P 475, 000
received the balance due from Account Receivable P 475, 000
Hashmi Co. on Jan 2 of the following
year instead of Dec 13.

Activity 12.4 Sales Transactions

Transaction Periodic System


June 1 Cash on sales P180,000 Cash P 180,000
Sales P 180,000

June 4 Sales on account P 650,000 Accounts Receivable P 650,000


Sales P 650,000

June 7 Received returned Sales returns and allowances P 90,000


merchandise sold on account, Account Receivable P 90,000
P 90,000
June 10 Collected the amount due on Cash P 548, 800
credit sales. Sales discount P 11, 200
Account Receivable P 560, 000

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