Answered: On March 1, 2022, Purrchezza bought 500…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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This is about accounting in merchandising business accounting. Thanks! 1. On March 1, how much is the amount to be debited to Purchases? 2. How much is the “freight-in” to be recorded in Purrchezza’s books? 3. How much is the “delivery expense” to be recorded in Sellenaur’s books? 4. How much cash should be paid to Sellenaur on March 12? 5. If Purrchezza paid on March 26 instead, how much cash did they pay Sellenaur?

On March 1, 2022, Purrchezza bought 500 pieces of
shirts from Sellenaur at a cost of P100 each with terms
of 3/15, n/45 and FOB Shipping Point. Shipping fees
amounted to P700. On March 12, Purrchezza paid the
invoice amount in full.

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