c. Shipping terms are F.O.B. shipping point, freight prepaid. Ilano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual remitted P6,480 on June 24. Required: 1. Prepare the entries for llano to record the sale and freight payment, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase (with shipping costs added to the invoice from llano) and the cash remittance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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c. Shipping terms are F.O.B. shipping point, freight prepaid. llano paid the shipping
costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual
remitted P6,480 on June 24.
Required:
1. Prepare the entries for llano to record the sale and freight payment, and the cash
receipt.
2. Prepare the entries for Pascual to record the purchase (with shipping costs added to
the invoice from llano) and the cash remittance.
Transcribed Image Text:c. Shipping terms are F.O.B. shipping point, freight prepaid. llano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual remitted P6,480 on June 24. Required: 1. Prepare the entries for llano to record the sale and freight payment, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase (with shipping costs added to the invoice from llano) and the cash remittance.
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