VAT included. Terms: 2/10, n/30. 10- Purchased merchandise from Myrna Store, P 10,000 plus 12% VAT. Terms: 2/10, n/30, FOB shipping point. 10- Paid freight for the above goods, P500. 11- Paid in full the account to Jack Store. 15- Recorded cash sales for the first half of May, P30,000, plus 10% VAT. 16- Sold merchandise on account to SM, P8,000 plus 12% VAT. Terms 10 and 2, n/60, FOB destination. 16- Paid freight for the above goods, P250. 17- Received defective goods from Rustans, P2,240, VAT included. 18- Received a check from Rustans for the amount owed on the May 8 sale. 25- Paid in full the account to Myrna Store. 30- Collected in full the account of SM. 31- Paid salaries of employees, P30,000, less 5% withholding tax, 3% SSS, 2% Philhealth and 1% Pag-ibig. Required: Journal entries for the foregoing transaction
Problem I- Jim Tenorio operates Scent Company, a perfume and soap store. During May 2020, the following transactions were completed.
May 1- Purchased merchandise from Jack Store, P 8,960, including VAT. Terms:
2/10, n/30.
3- Defective goods were returned to Jack Store, P1,000, VAT excluded.
8- Sold merchandise on account to Rustans, P11,200, VAT included. Terms: 2/10,
n/30.
10- Purchased merchandise from Myrna Store, P 10,000 plus 12% VAT. Terms:
2/10, n/30, FOB shipping point.
10- Paid freight for the above goods, P500.
11- Paid in full the account to Jack Store.
15- Recorded cash sales for the first half of May, P30,000, plus 10% VAT.
16- Sold merchandise on account to SM, P8,000 plus 12% VAT. Terms 10 and 2,
n/60, FOB destination.
16- Paid freight for the above goods, P250.
17- Received defective goods from Rustans, P2,240, VAT included.
18- Received a check from Rustans for the amount owed on the May 8 sale.
25- Paid in full the account to Myrna Store.
30- Collected in full the account of SM.
31- Paid salaries of employees, P30,000, less 5% withholding tax, 3% SSS, 2%
Philhealth and 1% Pag-ibig.
Required:
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