1. prepare adjusting entries for inventory2. Provide closing entries, balance sheet and income statement Merchandising Journal Entries(ADOPTED) Newton General Merchandise had the following transactions in March 2021:March 2Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30FOB shipping point. Paid the freight bill amounting to Php 4,000.Returned Php 3,000 of the merchandise purchased on March 2 becausethey were defective.Sold merchandise on account for Php 10,000. Terms 3/15, n/30. Thecost of the merchandise sold was Php 6,000.Paid the purchase made on March 2 less the return and the discount.Received Php 2,000 of the merchandise sold on March 8. The cost ofthe merchandise returned was Php 1,200.Received cash from the March 8 customer in full settlement of hisMarch 5March 8March 10March 12March 22account less the return and the discount.REQUIRED:Prepare the appropriate journal entries for both periodic and perpetual inventory systems.

Discount on purchase = (Purchase - purchase return) x discount rate = (36000-3000)*2% = 660

Answered: on General Merchandise had rchased…

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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1. prepare adjusting entries for inventory

2. Provide closing entries, balance sheet and income statement

Merchandising Journal Entries
(ADOPTED) Newton General Merchandise had the following transactions in March 2021:
March 2
Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30
FOB shipping point. Paid the freight bill amounting to Php 4,000.
Returned Php 3,000 of the merchandise purchased on March 2 because
they were defective.
Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The
cost of the merchandise sold was Php 6,000.
Paid the purchase made on March 2 less the return and the discount.
Received Php 2,000 of the merchandise sold on March 8. The cost of
the merchandise returned was Php 1,200.
Received cash from the March 8 customer in full settlement of his
March 5
March 8
March 10
March 12
March 22
account less the return and the discount.
REQUIRED:
Prepare the appropriate journal entries for both periodic and perpetual inventory systems.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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