General Pharmacy a business engaged in buying and selling of medicines and other related products has the following transactions for the month of March 2020. The entity buys merchandise on credit with a terms of 3/10, n/45 and sell merchandise on credit terms of 1/5, n/30. But there are also cases where the entity buy and sell merchandise in cash. The company uses the periodic system of recording inventory. March 4- Purchased medicines and other related products to Įpil-ipil Pharmaceutical Company on credit for P120,000. FOB Shipping point. Paid Allied Services for the freight amounting to P2,500. March 5- Sold merchandise (MDSE) to various customers for cash P 36,000. March 6- Returned defective MDSE to Ipil-ipil amounting to P10,000. Received returned from customer on March 5 for wrong specification and refunded the amount paid P1,200. March 7- Bought MDSE from Barato Company in cash P60,000. March 9- Sold MDSE on credit to Laguna Corporation amounting to P72,000. March 10- Paid in full account with Ipil-ipil Pharmaceutical Company. March 12- Received returned from Laguna Corporation for wrong brand of medicine delivered on March 9 amounting to P5,000. March 13- Received full payment from Laguna Corporation.
General Pharmacy a business engaged in buying and selling of medicines and other related products has the following transactions for the month of March 2020. The entity buys merchandise on credit with a terms of 3/10, n/45 and sell merchandise on credit terms of 1/5, n/30. But there are also cases where the entity buy and sell merchandise in cash. The company uses the periodic system of recording inventory. March 4- Purchased medicines and other related products to Įpil-ipil Pharmaceutical Company on credit for P120,000. FOB Shipping point. Paid Allied Services for the freight amounting to P2,500. March 5- Sold merchandise (MDSE) to various customers for cash P 36,000. March 6- Returned defective MDSE to Ipil-ipil amounting to P10,000. Received returned from customer on March 5 for wrong specification and refunded the amount paid P1,200. March 7- Bought MDSE from Barato Company in cash P60,000. March 9- Sold MDSE on credit to Laguna Corporation amounting to P72,000. March 10- Paid in full account with Ipil-ipil Pharmaceutical Company. March 12- Received returned from Laguna Corporation for wrong brand of medicine delivered on March 9 amounting to P5,000. March 13- Received full payment from Laguna Corporation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The company uses the periodic system of recording inventory.
Transcribed Image Text:CASE 1
General Pharmacy a business engaged in buying and selling of medicines and other related
products has the following transactions for the month of March 2020. The entity buys
merchandise on credit with a terms of 3/10, n/45 and sell merchandise on credit terms of 1/5,
n/30. But there are also cases where the entity buy and sell merchandise in cash. The company
uses the periodic system of recording inventory.
March 4- Purchased medicines and other related products to Įpil-ipil Pharmaceutical Company
on credit for P120,000. FOB Shipping point. Paid Allied Services for the freight amounting to
P2,500.
March 5- Sold merchandise (MDSE) to various customers for cash P 36,000.
March 6- Returned defective MDSE to Įpil-ipil amounting to P10,000. Received returned from
customer on March 5 for wrong specification and refunded the amount paid P1,200.
March 7- Bought MDSE from Barato Company in cash P60,000.
March 9- Sold MDSE on credit to Laguna Corporation amounting to P72,00.
March 10- Paid in full account with Ipil-ipil Pharmaceutical Company.
March 12- Received returned from Laguna Corporation for wrong brand of medicine delivered
on March 9 amounting to P5,000.
March 13- Received full payment from Laguna Corporation.
BCtrl)
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