M & J Trading purchased goods worth P150,000 with terms of n/30, FOB shipping point, freight prepaid. If the freight amounted to P10,000, the entry on the books of M & J should be
Q: 29.ABC Corp bought goods for P25000. Terms : 2%, 3% 2/10, n/30 FOB Shipping point Freight Prepaid.…
A: The accounts payable are the current liabilities for the business. Under gross method, the cash…
Q: The following are the transactions of a joint operation formed by A, B and C during a year: A…
A: Total contribution by A=Cash+Merchandise=P 400+P 800=P 1,200
Q: a. The records of ABC Co. show the following: Goods sold on an installment basis to XYZ, Inc., title…
A: Inventory refers to all the items, goods, merchandise, and materials held by a business for selling…
Q: 2021 TRANSACTIONS August 1 Phil Trading purchased merchandise from Webb Inc., P5,000; terms: 2/20,…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and…
A: IF the term is FOB shipping point then freight is added to the total cost but if the term is FOB…
Q: The following are the transactions of a joint operation formed by A, B and C during a year: > A…
A: Since you have asked two different questions under a single question. As per protocol we provide you…
Q: eline Company purchased an item of merchandise quoted and listed at P150,000 under the following…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: The company purchased appliances for sale worth P4,000,000, VAT exclusive on account under the…
A: Net purchases = Purchases worth - Purchase discount = P4,000,000 - P4,000,000 x 10% = P3,600,000
Q: On April 2, 2020 Happy Company purchased MDSE from Enjoy Corporation with a list price of P450,000;…
A: Discount on payment = (Purchase - purchase return) x discount rate = (415000 - 9000) x 2% = P8,120
Q: ABC Corp purchased goods for P20,000. Terms: less 5%, 7%, 2/10, n/30. FOB Shipping Point, Freight…
A: The accounts payable includes the amount due to be paid to suppliers for credit purchases of…
Q: The following are the transactions of a joint operation formed by A, B and C during a year: A…
A: A, B, and C have started joint operations during the year. They agreed to share profit and loss…
Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…
A: Inventory is one of the important current asset being held by the business. This is reported under…
Q: Presented below is the list of inventory items of ABC Corp at Dec 31, 20X1: a. Goods sold on…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
Q: On December 31, 2024, Punch Company reported inventory per physical count t P1,500,000. The entity…
A: Inventory= Physical inventory+Goods in transit FOB Shipping point - Goods held on consignment+Goods…
Q: Beta Company has incurred the following costs during the current year: Cost of purchases based on…
A: Purchases are the goods which have been purchased by the company in order to sell them to the…
Q: Taha company purchased $8,000 of inventory uner FOB destination. Freight cost amounted to $200. The…
A: Purchase of inventory with FOB Destination terms will result in an increase in the inventory balance…
Q: Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference…
A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…
Q: 2021 TRANSACTIONS ugust 1 Phil Trading purchased merchandise from Webb Inc., P5,000; terms: 2/20,…
A: Journal Entry The purpose of preparing the journal entry to segregate the transaction which are…
Q: The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for…
A: Cost of goods available for sales Cost of goods sold + Ending inventory (Selling expenses *…
Q: ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB…
A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…
Q: purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping…
A: Under FOB shipping terms of the shipment, Freight is to be borne by the buyer of goods. Therefore it…
Q: FOREVER Inc purchased P200,000 worth of goods with trade discount of 15% and 10% from the list…
A: Trade discount is that type of discount which is given on the list price of the goods and this is…
Q: a. Purchased goods in transit, shipping FOB Destination. Invoice price - P64,000, which includes…
A: Purchased goods in transit = Purchased goods in transit+ freight costs = P96,000 + P6,000 =…
Q: 2019 Nov. 1- A. Cruz, owner of Bingget Trading, invested P2,000 cash, merchandise P4,500, and store…
A: 1. Journal Entries - Journal Entries are the record of transactions to their respective accounts.
Q: Entity A acquires inventories and incurs the following costs: Purchase price, gross of trade…
A: The cost of inventory includes the following a. cost of purchased merchandise, less discounts b any…
Q: goods were on hand. In addition, the entity determined that P240,000 of goods purchased ere in…
A: Solution: Under FOB destination terms, ownership of goods belong to seller of goods. Under FOB…
Q: Entity A has a beginning inventory of P340,000. During the period Entity A purchased inventories…
A: Formula: Gross profit = Net sales - Cost of goods sold
Q: Everest acquired assets and liabilities of Cola for Cola 's book value at the balance sheet date, At…
A: In the books of acquirer , assets acquired will be recorded at fair value . In the balance sheet ,…
Q: A. Cruz, owner of Bingget Trading, invested P2,000 cash, merchandise P4,500, and store equipment…
A: Journal Entry: Journal entries are the entries which are used to record the business financial…
Q: ntity A has a beginning inventory of ₱280,000. During the period Entity A purchased inventories…
A: Cost of goods sold is the amount of cost which is arrived by deducting ending inventory from the…
Q: FDN Trading recorded the following events involving a recent purchase merchandise: Received goods…
A: Solution: Net cost of purchases is cost of goods purchased reduced by return and discounts and…
Q: 32.ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB…
A: Every business needs inventory for the purpose of use them in manufacturing purpose. Inventory may…
Q: 2021 TRANSACTIONS August 1 Phil Trading purchased merchandise from Webb Inc., P5,000; terms: 2/20,…
A: Journal Entry :- The purpose of preparing the journal entry to segregate the transaction which are…
Q: Dignity Company had the following consignment transactions during the current year: Inventory…
A: Consigned inventory: It can be defined as a model of supply chain whereby a product is sold by a…
Q: The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for…
A: Cost of goods sold: It is the total amount a company spends on the sale of a product that can be…
Q: Indicate the transaction price for this situation and when revenue will be recognized Groupo sells…
A: As per IFRS 15 ( Revenue from contracts with customers ) Under IFRS 15 revenue has to be recognized…
Q: On April 2, 2020 Happy Company purchased MDSE from Enjoy Corporation with a list price of P450,000;…
A: Purchases = list price - trade discount = 450000 - 450000*10% = P415,000 Discount on payment =…
Q: BC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping…
A: Under FOB shipping point terms, the buyer of the goods can exercise right on the goods upon they are…
Q: Michael Company purchased goods worth P7,500. Term: n/30, FOB Shipping point, Freight Prepaid. Entry…
A: FOB Shipping Point, Freight Prepaid means that that the buyer is responsible for the freight charge…
Q: An entity have two items that are under evaluation for possible year end adjustments . (1) Purchase…
A: purchase = 120000 freight = 5000 purchase return = 20000 correct ending inventory = 200,000 cost of…
Q: On December 31, 2024, Punch Company reported inventory per physica count at P1,500,000. The entity…
A: Introduction:- The following points important for calculation of inventory as follows:- Cost of…
Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…
A: Cost of inventory includes Purchase cost, transportation cost of bring the inventory from seller to…
Q: Home office EE shipped merchandise costing P94,200 to XX branch and EE paid for the freight charges…
A: The accounting system in which the separate ledger accounts are prepared for each branch in the…
Q: On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000.…
A: Cost of inventory includes Purchase cost, transportation cost of bring the inventory from seller to…
Q: Freight terms Determine the amount to be paid in full settlement of each of twoinvoices, (a) and…
A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…
Q: How much is the cost of the inventories purchased? * Entity A acquires inventories and incurs the…
A: Inventory: It is the current assets of the company which has to sale within a year or else lead to…
Q: The following are the transactions of a joint operation formed by A, B and C during a year: > A…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: FDN Company sold goods amounting to P5,000 on account. Freight is on terms FOB shipping point,…
A: FOB shipping point is a point where the liability of the seller ends and he is not responsible for…
Q: Entity A has a beginning inventory of P340,000. During the period Entity A purchased inventories…
A: Formula: Gross profit = Net sales - Cost of goods sold.
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- Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.ABC Corp purchased goods for P20,000. Terms: less 5%, 7%, 2/10, n/30. FOB Shipping Point, Freight Prepaid. Freight charge was P500. How much is the accounts payable for this transaction under the gross method? 20,000 X 95% X 93% + 500 20,000 X 95% X 93% X 98% + 500 20,000 X 95% X 93% - 500 20,000 X 95% X 93% X 98% -500
- ABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight collect. If ABC uses the net method, the amount of accounts payable to be credited is: a. 10,000 X 10% X 2% b. 10,000 X 90% X 98% c. 10,000 X 90% X 98% minus 200 d. 10,000 X 90% X 98% plus 200On October 1, Ace Company purchased P6,000 worth of goods on terms of 2/10, n/30. Freight of P500 was prepaid by the seller under the term FOB Shipping Point, goods worth P1,000 were returned and the account was paid on October 10. The net cost of purchases wasABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight prepaid. If ABC uses the net method, the amount of inventory to be debited is: 10,000 X 10% X 2% 10,000 X 10% X 2% plus 200 10,000 X 90% X 98% 10,000 X 90% X 98% plus 200
- On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect. Amount of freight cost is P1,000, The amount of Accounts Receivable to be recorded on the date of purchase will be⚫On October 1, XYZ Company purchased P6,000 worth of goods on terms of 2/15,n/30. Freight of P500 was prepaid by the seller under the term FOB shipping point. Goods worth P1,000 were returned on October 2 and the account was paid on October 3. The discount received from the seller wasJungkook Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping costs amounted to P50. The seller shipped the goods on December 31, 2021. Jungkook Co. received the goods on January 2, 2022 and settled the account on January 5, 2022. How much is the capitalizable cost of the inventory purchased if the terms of the shipment are FOB shipping point, freight prepaid? A. 0 B. 2,950 C. 3,050 D. 3,000
- Vanessa company purchased P15,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point, freight prepaid. The freight charge was P500. On June 20, it returned P800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:BTS Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping costs amounted to P50. The seller shipped the goods on December 31, 2021. BTS Co. received the goods on January 2, 2022 and settled the account on January 5, 2022. How much is the capitalizable cost of the inventory purchased if the terms of the shipment are FOB shipping point, freight prepaid?FOREVER Inc purchased P200,000 worth of goods with trade discount of 15% and 10% from the list price. Freight charges is P5,000 and payment terms is 2/10, n/30. What is the cost of inventory?
