(1)Prepare journal entries for both Periodic and Perpetual Inventory Systems and (2) Prepare the Unadjusted Trial Balance for both Inventory Systems.
Transcribed Image Text:Merchandising Business Transactions
Instruction: Prepare the necessary journal entries under the perpetual and periodic inventory systems
assuming cost of goods is 75% of sales.
Mr. A opened his own gadget store last Jan. 1, 2021 and has the following transactions for the month:
Invested cash, P100,000 for the business.
Paid advance rental for 3 months of P30,000
01-Jan
02-Jan
Purchased merchandise on cash for P35,000.
Returned defective merchandise amounting to P3,000.
05-Jan
06-Jan
10-Jan
Sold merchandise on account for P48,000, terms 3/15, n/30
Purchased merchandise on account for P32,000, terms 2/10, n/30
12-Jan
Paid the shipping cost of P500
Sold merchandise for P14,000 cash
12-Jan
15-Jan
16-Jan
Customers returned goods amounting to P2,000 from goods sold last Jan 15
22-Jan
Paid the goods purchased last Jan 12.
Received payment from the customers sold last Jan 10
Purchase merchandise for P20,000, paid 5,000 down-payment and balance payable in
1 month.
Sold merchandise on account for P13,000, terms 3/15, n/30
25-Jan
26-Jan
28-Jan
30-Jan
Paid salaries of the employees for P15,000
30-Jan
Mr. A withdrew P5,000 for personal use.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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