Maxie Company regularly buys merchandise from Dawson Suppliers and is allowed a trade discount of 20/10/10 from the list price. For the month of September, Maxie Company purchased merchandise with a list price of P100,000 and terms of 2/10, n/30. Requirements: 1. The amount debited to Materials if the purchase discount is treated as other income (Purchases recorded at gross). 2. The amount debited to Materials if the purchase discount is treated as a reduction of purchases. (Recorded as net)
Maxie Company regularly buys merchandise from Dawson Suppliers and is allowed a trade discount of 20/10/10 from the list price. For the month of September, Maxie Company purchased merchandise with a list price of P100,000 and terms of 2/10, n/30. Requirements: 1. The amount debited to Materials if the purchase discount is treated as other income (Purchases recorded at gross). 2. The amount debited to Materials if the purchase discount is treated as a reduction of purchases. (Recorded as net)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Problem 5
Transcribed Image Text:6,000,
pounds materials are
total P7,500. Weights for the respective
and 7,500 pounds.
Required:
1. Cost per pound to be entered on the stock cards for each materials, based on
cost.
2. Cost per pound to be entered on the stock cards for each material, based on
shipping weight.
Problem 5
Maxie Company regularly buys merchandise from Dawson Suppliers and is allowed a
trade discount of 20/10/10 from the list price. For the month of September, Maxie
Company purchased merchandise with a list price of P100,000 and terms of 2/10,
n/30.
Requirements:
1. The amount debited to Materials if the purchase discount is treated as other
income (Purchases recorded at gross).
2. The amount debited to Materials if the purchase discount is treated as a
reduction of purchases. (Recorded as net)
Problem 6
The following information is' to be used in costing inventory on August 31.
August 1
Beginning balance
1.600 units at P6 00
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