On March 1, 2022, Purrchezza bought 500 pieces of hirts from Sellenaur at a cost of P100 each with terms of 3/15, n/45 and FOB Shipping Point. Shipping fees mounted to P700. On March 12, Purrchezza paid the nvoice amount in full.
On March 1, 2022, Purrchezza bought 500 pieces of hirts from Sellenaur at a cost of P100 each with terms of 3/15, n/45 and FOB Shipping Point. Shipping fees mounted to P700. On March 12, Purrchezza paid the nvoice amount in full.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This is about accounting in merchandising business accounting. Thanks!
1. On March 1, how much is the amount to be debited to Purchases?
2. How much is the “freight-in” to be recorded in Purrchezza’s books?
3. How much is the “delivery expense” to be recorded in Sellenaur’s books?
4. How much cash should be paid to Sellenaur on March 12?
5. If Purrchezza paid on March 26 instead, how much cash did they pay Sellenaur?
Transcribed Image Text:On March 1, 2022, Purrchezza bought 500 pieces of
shirts from Sellenaur at a cost of P100 each with terms
of 3/15, n/45 and FOB Shipping Point. Shipping fees
amounted to P700. On March 12, Purrchezza paid the
invoice amount in full.
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