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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.

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.

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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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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