(ADOPTED) Newton General Merchandise had the following transactions in March 2021: March 2 Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000. March 5 Returned Php 3,000 of the merchandise purchased on March 2 because they were defective. March 8 Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000. March 10 Paid the purchase made on March 2 less the return and the discount. March 12 Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200. March 22 Received cash from the March 8 customer in full settlement of his account less the return and the discount. REQUIRED: Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
(ADOPTED) Newton General Merchandise had the following transactions in March 2021: March 2 Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000. March 5 Returned Php 3,000 of the merchandise purchased on March 2 because they were defective. March 8 Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000. March 10 Paid the purchase made on March 2 less the return and the discount. March 12 Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200. March 22 Received cash from the March 8 customer in full settlement of his account less the return and the discount. REQUIRED: Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Merchandising Journal Entries
(ADOPTED) Newton General Merchandise had the following
transactions in March 2021:
March 2 Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB
shipping point. Paid the freight bill amounting to Php 4,000.
March 5 Returned Php 3,000 of the merchandise purchased on March 2 because they
were defective.
March 8 Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the
merchandise sold was Php 6,000.
March 10 Paid the purchase made on March 2 less the return and the discount.
March 12 Received Php 2,000 of the merchandise sold on March 8. The cost of the
merchandise returned was Php 1,200.
March 22 Received cash from the March 8 customer in full settlement of his account less
the return and the discount.
REQUIRED:
Prepare the appropriate journal entries for both periodic and
perpetual inventory systems.
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