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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.)
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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