The following were selected from among the transactions completed by Home Sentry Company during August, 2020. Aug 02 Purchased merchandise on account from Diane Co., list price P320,000. Term: 20%, 10%, 2/10, n/30. Aug 03 Sold merchandise for cash, P410,000. Aug 04 Sold merchandise on account to Wu Co., P680,000. Term: 2/10, n/30 Aug 05 Received returned merchandise from the August 03 cash sale, P50,000. Aug 06 Bought merchandise on account from Lambert Co., P540,000. Term: 3/5, 2/10, 1/15, n/30. Aug 07 Returned P30,000 of merchandise purchased from Diane Co. Aug 09 Sold merchandise on account to Howell Co., list price P750,000. Term: 10%, 10%, 5%, 3/5, 2/10, 1/15, n/30. Aug 10 Accepted returned merchandise from Howell Co., P50,000. Aug 12 Paid Diane Co. in full. Aug 14 Received cash on account from sale to Wu Co. Aug 18 Settled Lambert Co. in full. Aug 23 Received cash on account from sale to Howell Co. Aug 25 Purchased merchandise for cash, P220,000. Aug 28 Returned P20,000 of merchandise purchased on August 25. Requirements: 1. Journalize the transactions. 2. Calculate the net purchases and net sales for the period. (Present in good form.)

The following were selected from among the transactions completed by Home Sentry Company during August, 2020. Aug 02 Purchased merchandise on account from Diane Co., list price P320,000. Term: 20%, 10%, 2/10, n/30. Aug 03 Sold merchandise for cash, P410,000. Aug 04 Sold merchandise on account to Wu Co., P680,000. Term: 2/10, n/30 Aug 05 Received returned merchandise from the August 03 cash sale, P50,000. Aug 06 Bought merchandise on account from Lambert Co., P540,000. Term: 3/5, 2/10, 1/15, n/30. Aug 07 Returned P30,000 of merchandise purchased from Diane Co. Aug 09 Sold merchandise on account to Howell Co., list price P750,000. Term: 10%, 10%, 5%, 3/5, 2/10, 1/15, n/30. Aug 10 Accepted returned merchandise from Howell Co., P50,000. Aug 12 Paid Diane Co. in full. Aug 14 Received cash on account from sale to Wu Co. Aug 18 Settled Lambert Co. in full. Aug 23 Received cash on account from sale to Howell Co. Aug 25 Purchased merchandise for cash, P220,000. Aug 28 Returned P20,000 of merchandise purchased on August 25. Requirements: 1. Journalize the transactions. 2. Calculate the net purchases and net sales for the period. (Present in good form.)

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 37E

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