Hepson Company is specializing on sale of printers and related gadgets, including ink cartridges. Their lines of merchandise include all brands, whether high-end or low-end product, catering to both individual and institutional users of the products. During the year, selected transactions relating to its purchases follow: Purchases of Bro printers from Metro Pacific Company Purchases of Howlet printers from Ayaling Corporation Purchases of ink cartridges from Metro Pacific Company P 836,000 524,500 180,000 Terms of Metro Pacific Company and Ayaling Corporation are as follows: Metro Pacific Company – 3/10, net/30 Ayaling Corporation – 2/10, n/30 During the year, the company received credit memoranda for defective merchandise returned as follows: (All returns and allowances took place within five days of purchases and prior to any payment of account) Metro Pacific Company Ayaling Corporation P 52,000 28,500 Total cash discounts taken during the year amounted to P22,180.

Hepson Company is specializing on sale of printers and related gadgets, including ink cartridges. Their lines of merchandise include all brands, whether high-end or low-end product, catering to both individual and institutional users of the products. During the year, selected transactions relating to its purchases follow: Purchases of Bro printers from Metro Pacific Company Purchases of Howlet printers from Ayaling Corporation Purchases of ink cartridges from Metro Pacific Company P 836,000 524,500 180,000 Terms of Metro Pacific Company and Ayaling Corporation are as follows: Metro Pacific Company – 3/10, net/30 Ayaling Corporation – 2/10, n/30 During the year, the company received credit memoranda for defective merchandise returned as follows: (All returns and allowances took place within five days of purchases and prior to any payment of account) Metro Pacific Company Ayaling Corporation P 52,000 28,500 Total cash discounts taken during the year amounted to P22,180.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 19PC

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