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cash discounts taken dur

cash discounts taken dur

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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7. How much were the discounts lost? 

Hepson Company is specializing on sale of printers and related gadgets, including ink cartridges. Their lines of merchandise include all brands, whether high-end or low-end product, catering to both individual and institutional users of the products. During the year, selected transactions relating to its purchases follow: Purchases of Bro printers from Metro Pacific Company Purchases of Howlet printers from Ayaling Corporation Purchases of ink cartridges from Metro Pacific Company P 836,000 524,500 180,000 Terms of Metro Pacific Company and Ayaling Corporation are as follows: Metro Pacific Company - 3/10, net/30 Ayaling Corporation - 2/10, n/30 During the year, the company received credit memoranda for defective merchandise returned as follows: (All returns and allowances took place within five days of purchases and prior to any payment of account) Metro Pacific Company Ayaling Corporation P 52,000 28,500 Total cash discounts taken during the year amounted to P22,180.
Transcribed Image Text:Hepson Company is specializing on sale of printers and related gadgets, including ink cartridges. Their lines of merchandise include all brands, whether high-end or low-end product, catering to both individual and institutional users of the products. During the year, selected transactions relating to its purchases follow: Purchases of Bro printers from Metro Pacific Company Purchases of Howlet printers from Ayaling Corporation Purchases of ink cartridges from Metro Pacific Company P 836,000 524,500 180,000 Terms of Metro Pacific Company and Ayaling Corporation are as follows: Metro Pacific Company - 3/10, net/30 Ayaling Corporation - 2/10, n/30 During the year, the company received credit memoranda for defective merchandise returned as follows: (All returns and allowances took place within five days of purchases and prior to any payment of account) Metro Pacific Company Ayaling Corporation P 52,000 28,500 Total cash discounts taken during the year amounted to P22,180.
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