Journalizing Sales and Purchase-Related Transactions Detoya Distributors and Naranjo Retailers engaged in the following transactions during the month of November 2020: November 4 Detoya sold merchandise on account to Naranjo, P162,000. Terms: FOB Destination; 2/10, n/30. Freight charges amounted to P2,000. 5 Detoya sold merchandise on account to Naranjo, P710,000. Terms: FOB Shipping pint; 2/10, n/30. Freight charges amounted to P8,000. 6 Naranjo paid freight charges on the purchase of November 5. 7 Detoya received returned merchandise from Naranjo in the amount of P12,000 from the November 4 sale. 9 Detoya received payment from Naranjo for the November 4. 10 Detoya paid the transportation charges on the November 4 shipment. 12 Detoya received payment from Naranjo for the November 5 transaction. 18 Detoya sold merchandise on account to Naranjo, P250,000. Terms: 40% trade discount; FOB shipping point; 2/10, n/30. 21 Naranjo paid freight charges on the November 18 transaction, P3,000. 23 Detoya received payment from Naranjo for the amount due from the transaction of November 18. Required: 1. Prepare the journal entries for Detoya Distributors 2. Prepare the journal entries for Naranjo Retailers

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 34E

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Journalizing Sales and Purchase-Related Transactions

Detoya Distributors and Naranjo Retailers engaged in the following transactions during the month of November 2020:

November
4	Detoya sold merchandise on account to Naranjo, P162,000.
		Terms: FOB Destination; 2/10, n/30. Freight charges
		amounted to P2,000.

5	Detoya sold merchandise on account to Naranjo, P710,000.
		Terms: FOB Shipping pint; 2/10, n/30. Freight charges
		amounted to P8,000.

6	Naranjo paid freight charges on the purchase of November 5.

7	Detoya received returned merchandise from Naranjo in the
		amount of P12,000 from the November 4 sale.

9	Detoya received payment from Naranjo for the November 4.

10	Detoya paid the transportation charges on the November 4 shipment.

12	Detoya received payment from Naranjo for the November 5
		transaction.

18	Detoya sold merchandise on account to Naranjo, P250,000.
		Terms: 40% trade discount; FOB shipping point; 2/10, n/30.

21	Naranjo paid freight charges on the November 18 transaction, P3,000.

23	Detoya received payment from Naranjo for the amount due from
		the transaction of November 18.

Required:
1. Prepare the journal entries for Detoya Distributors
2. Prepare the journal entries for Naranjo Retailers

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