C. The following selected account balances were taken from the records of Alex Ajoc, the owner of Surigao Hardware & Construction Supply for the month of December 20A. (VAT of 12 % is billed separately.) Purchases Purchase Returns & Allowances P710,000 5,000 20,000 1,020,000 8,000 25,000 Purchase Discounts Sales Sales Returns &Allowances Sales Discounts Required: 1. Compute the input tax 2. Compute the output tax 3. Compute the VAT Payable 4. Entry to close the Input and Output Tax 5. Entry to remit VAT Payable to Bureau of Internal Revenue
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- 46. What would the amount of cost of sales be in the following scenario? Purchases returns, R8 000; Freight costs, R4 800; Sales, R320 000; Closing inventory, R25 000; Purchases, R40 000 and Opening inventory, R25 000. A. R32 000 B. R36 800 C. R40 000 D. R283 200E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Bolton plc sold toArquette Company merchandise having a sales price of £2,000 with terms of 2/10,n/60. An invoice totaling £90, terms n/30, was received by Arquette on June 8 fromJohn Booth Transport Service for the freight cost. On June 12, the company received acheck for the balance due from Arquette Company.Instructionsa. Prepare journal entries on the Bolton plc books to record sales and receivables forall the events noted above under each of the following bases.1. Sales and receivables are entered at gross selling price.2. Sales and receivables are entered at net of cash discounts.b. Prepare the journal entry under basis (a)(2), assuming that Arquette Companydid not remit payment until July 29.E8.8 (LO 2) (Purchases Recorded, Gross Method) Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Instructions a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. b. Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. c. At what amount would the purchase on February 1 be recorded if the net method were used?
- 29.ABC Corp bought goods for P25000. Terms : 2%, 3% 2/10, n/30 FOB Shipping point Freight Prepaid. Freight related to the purchase was P1,000. How much is the accounts payable under the gross method? 22,290 22,765 24,290 24,7651) Merchandise acquired cost is 114.000 +10 % VAT .Freight In was 6.000 TL+10% VAT Paid by the vendor. Purchase is completed by endorsing a check.Bee's purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB shipping point, freight collect. The net purchase under the net method amounts to: [A]147,000 [B]148,500 [C]147,500 [D]150,500
- #38 ARSENAL Company recorded the following events involving a recent purchase of merchandise: Received goods for P20,000, terms 2/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the Company’s merchandise inventory increased by how much?P6.11 (LO 6), AP Rayre Books uses the retail inventory method to estimate its monthly ending invento- ries. The following information is available for two of its departments at October 31, 2022. Hardcovers Paperbacks Cost Retail Cost Retail Beginning inventory $ 420,000 $ 640,000 $ 280,000 $ 360,000 Purchases 2,135,000 3,200,000 1,155,000 1,540,000 Freight-in 24,000 12,000 Purchase discounts 44,000 22,000 Net sales 3,100,000 1,570,000 At December 31, Rayre Books takes a physical inventory at retail. The actual retail values of the inven- tories in each department are Hardcovers $744,000 and Paperbacks $335,000. Instructions a. Determine the estimated cost ofthe ending inventory for each department at October 31, 2022, using the retail inventory method. b. Compute the ending inventory at cost for each department atDecember 31, assuming the cost-to- retail ratios for the year are 65% for Hardcovers and 75% for Paperbacks.8. GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point prepaid. At what amount is the accounts payable debited upon payment?
- sh16 Abbey Co. sold merchandise to Gomez Co. on account, $34,000, terms 2/15, n/45. The cost of the goods sold was $14,693. Abbey Co. issued a credit memo for $4,100 for merchandise returned that originally cost $1,189. What is the amount of gross profit earned by Abbey Co. on these transactions? a.$13,504 b.$19,816 c.$16,396 d.$4,10010. JASMINE Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point collect. The net purchases under the net method is? * PLEASE SHOW YOUR SOLUTIONS IN GOOD ACCOUNTING FORM. THANK YOU!BUS 038 : Business Computatns5. You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15, n/30,” what amount must you pay if you pay within the discount period?