On June 16, 2021, llano sold merchandise to Pascual for P6,000, terms 2/10, n/30. Shipping costs were P600. Pascual received the goods and llano's invoice on June 17. On June 24, Pascual sent the payment to llano, which llano received on June 25. Both Ilano and Pascual use the periodic inventory system. The following are several arrangements regarding the shipping costs: a. Shipping terms are F.O.B. shipping point, freight collect. Pascual paid the shipping costs on June 17 and remitted P5,880 on June 24. Required: 1. Prepare the entries for llano to record the sale and the cash receipt. 2. Prepare the entries for Pascual to record the purchase, the payment of shipping costs, and the cash remittance. b. Shipping terms are F.O.B. destination, freight prepaid. llano paid the shipping costs on June 16. Pascual remitted P5,880 on June 24. Required: 1. Prepare the entries for llano to record the sale, the payment of shipping costs, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase and the cash remittance. c. Shipping terms are F.O.B. shipping point, freight prepaid. Ilano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual remitted P6,480 on June 24. Required: 1. Prepare the entries for llano to record the sale and freight payment, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase (with shipping costs added to the invoice from llano) and the cash remittance.
On June 16, 2021, llano sold merchandise to Pascual for P6,000, terms 2/10, n/30. Shipping costs were P600. Pascual received the goods and llano's invoice on June 17. On June 24, Pascual sent the payment to llano, which llano received on June 25. Both Ilano and Pascual use the periodic inventory system. The following are several arrangements regarding the shipping costs: a. Shipping terms are F.O.B. shipping point, freight collect. Pascual paid the shipping costs on June 17 and remitted P5,880 on June 24. Required: 1. Prepare the entries for llano to record the sale and the cash receipt. 2. Prepare the entries for Pascual to record the purchase, the payment of shipping costs, and the cash remittance. b. Shipping terms are F.O.B. destination, freight prepaid. llano paid the shipping costs on June 16. Pascual remitted P5,880 on June 24. Required: 1. Prepare the entries for llano to record the sale, the payment of shipping costs, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase and the cash remittance. c. Shipping terms are F.O.B. shipping point, freight prepaid. Ilano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual remitted P6,480 on June 24. Required: 1. Prepare the entries for llano to record the sale and freight payment, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase (with shipping costs added to the invoice from llano) and the cash remittance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Problem #11
Transportation Costs
On June 16, 2021, llano sold merchandise to Pascual for P6,000, terms 2/10, n/30.
Shipping costs were P600. Pascual received the goods and llano's invoice on June 17.
On June 24, Pascual sent the payment to llano, which llano received on June 25. Both
lano and Pascual use the periodic inventory system. The following are several
arrangements regarding the shipping costs:
a. Shipping terms are F.O.B. shipping point, freight collect. Pascual paid the shipping
costs on June 17 and remitted P5,880 on June 24.
Required:
1. Prepare the entries for llano to record the sale and the cash receipt.
2. Prepare the entries for Pascual to record the purchase, the payment of shipping
costs, and the cash remittance.
b. Shipping terms are F.O.B. destination, freight prepaid. llano paid the shipping
costs on June 16. Pascual remitted P5,880 on June 24.
Required:
1. Prepare the entries for llano to record the sale, the payment of shipping costs, and
the cash receipt.
2. Prepare the entries for Pascual to record the purchase and the cash remittance.
c. Shipping terms are F.O.B. shipping point, freight prepaid. Illano paid the shipping
costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual
remitted P6,480 on June 24.
Required:
1. Prepare the entries for llano to record the sale and freight payment, and the cash
receipt.
2. Prepare the entries for Pascual to record the purchase (with shipping costs added to
the invoice from llano) and the cash remittance.
d. Shipping terms are F.O.B. destination, freight collect. Pascual paid the shipping
costs on June 17 and deducted the P600 from the amount owed to llano A copy of
the freight bill to llano was provided with the June 24 cash remittance. Pascual
remitted P5,280 on June 24.
Required:
1. Prepare the entries for llano to record the sale and the cash receipt.
2. Prepare the entries for Pascual to record the purchase, the freight payment, and the
cash remittance.
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