Practice Problem #4: Assume a perpetual inventory system. Journalize the following sales related transactions. a) Purchased merchandise on account from B Co., list price P20,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of P650 added to the invoice. b) Purchased merchandise on account from C Co., P8,000, terms FOB destination, 1/10, n/30. c) Sold merchandise on account to D Co., P9,800, terms 2/10, n/30. The cost of the merchandise sold was P5,800. d) Returned P2,000 of merchandise purchased from C Co. (b) e) Paid B Co. on account for purchase in (a) less discount. f) Received merchandise returned by D Co. from sale in (c), P1,800. The cost of the merchandise returned was P1,080. g) Paid C Co. on account for purchase in (b) less return (d) and discount. h) Received cash on account from D Co. for sale in (c) less return (f) and discount. i) Perpetual inventory records indicate that P85,000 of merchandise should be on hand. The physical inventory indicates that P81,350 of merchandise is on hand. What is the Balance of your Merchandise inventory account?
Practice Problem #4: Assume a perpetual inventory system. Journalize the following sales related transactions.
a) Purchased merchandise on account from B Co., list price P20,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of P650 added to the invoice.
b) Purchased merchandise on account from C Co., P8,000, terms FOB destination, 1/10, n/30.
c) Sold merchandise on account to D Co., P9,800, terms 2/10, n/30. The cost of the merchandise sold was P5,800.
d) Returned P2,000 of merchandise purchased from C Co. (b)
e) Paid B Co. on account for purchase in (a) less discount.
f) Received merchandise returned by D Co. from sale in (c), P1,800. The cost of the merchandise returned was P1,080.
g) Paid C Co. on account for purchase in (b) less return (d) and discount.
h) Received cash on account from D Co. for sale in (c) less return (f) and discount.
i) Perpetual inventory records indicate that P85,000 of merchandise should be on hand. The physical inventory indicates that P81,350 of merchandise is on hand.
What is the Balance of your Merchandise inventory account?
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