A company had the following transactions during December: Dec 1 Sold merchandise on credit for Php5,000, terms 3/10, n/30. The items sold had a cost of Php3,500. 2 Purchased merchandise for cash, Php720. Purchased merchandise on credit for Php2,600, terms 1/20, n/30. 7 Issued a credit memorandum for Php300 to a customer who returned merchandise purchased November 29. The returned items had a cost of Php21o. 9 Received payment for merchandise sold December 1. 10 Received a credit memorandum for the return of faulty merchandise purchased on December 4 for Php600. 12 Paid freight charges of Php200 for merchandise ordered last month. (FOB shipping point). 20. Paid for the merchandise purchased December 4 less the portion that was returned. 24 Sold merchandise on credit for Php7,000, terms 2/10, n/30. The items had a cost of Php4,900. 31 Received payment for merchandise sold on December 24.
A company had the following transactions during December: Dec 1 Sold merchandise on credit for Php5,000, terms 3/10, n/30. The items sold had a cost of Php3,500. 2 Purchased merchandise for cash, Php720. Purchased merchandise on credit for Php2,600, terms 1/20, n/30. 7 Issued a credit memorandum for Php300 to a customer who returned merchandise purchased November 29. The returned items had a cost of Php21o. 9 Received payment for merchandise sold December 1. 10 Received a credit memorandum for the return of faulty merchandise purchased on December 4 for Php600. 12 Paid freight charges of Php200 for merchandise ordered last month. (FOB shipping point). 20. Paid for the merchandise purchased December 4 less the portion that was returned. 24 Sold merchandise on credit for Php7,000, terms 2/10, n/30. The items had a cost of Php4,900. 31 Received payment for merchandise sold on December 24.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. With complete answer

Transcribed Image Text:A company had the following transactions during December:
Dec 1 Sold merchandise on credit for Php5,000, terms 3/10,
n/30. The items sold had a cost of Php3,500.
2 Purchased merchandise for cash, Php720.
Purchased merchandise on credit for Php2,600, terms
1/20, n/30.
4
Issued a credit memorandum for Php300 to a customer
who returned merchandise purchased November 29. The
returned items had a cost of Php210.
7
Received payment for merchandise sold December 1.
10 Received a credit memorandum for the return of faulty
merchandise purchased on December 4 for Php600.
12 Paid freight charges of Php200 for merchandise ordered
last month. (FOB shipping point).
20. Paid for the merchandise purchased December 4 less the
portion that was returned.
24 Sold merchandise on credit for Php7,000, terms 2/10,
n/30. The items had a cost of Php4,900.
31 Received payment for merchandise sold on December 24.
Required:
Prepare the general journal entries to record these transactions using a
perpetual inventory system. (Record all purchases initially at the gross
invoice amount.)
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