Answered: Determine the amount of cash collected…

Determine the amount of cash collected at the time of making a sale 9f $2,999 worth of merchandise subject to a 6% provincial sales tax plus 5% gst

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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(ADOPTED) Newton General Merchandise had the following transactions in March 2021:March 2Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000.March 5Returned Php 3,000 of the merchandise purchased on March 2 because they were defective.March 8Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000.March 10Paid the purchase made on March 2 less the return and the discount.March 12Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200.March 22Received 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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