On March 3, 2022, Tagaventah sold to Tagavilly 5 units of mobile phones at P12,000 each with terms of 2/10, n/30 and FOB Destination. Shipping fees amounted to P300. Upon inspection, Tagavilly found 1 unit to be defective and returned the same on March 5. Tagaventah received payment from Tagavilly on April 15.
On March 3, 2022, Tagaventah sold to Tagavilly 5 units of mobile phones at P12,000 each with terms of 2/10, n/30 and FOB Destination. Shipping fees amounted to P300. Upon inspection, Tagavilly found 1 unit to be defective and returned the same on March 5. Tagaventah received payment from Tagavilly on April 15.
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 3, how much is the amount to be credited to Sales?
2. On March 5, how much should be debited to Sales Returns and Allowances?
3. How much is the “delivery expense” to be recorded in Tagaventah’s books?
4. How much cash was received by Tagaventah on April 15?
5. How much is the “freight-in” to be recorded in Tagavilly’s books?
Transcribed Image Text:On March 3, 2022, Tagaventah sold to Tagavilly 5
units of mobile phones at P12,000 each with terms of
2/10, n/30 and FOB Destination. Shipping fees
amounted to P300. Upon inspection, Tagavilly found 1
unit to be defective and returned the same on March 5.
Tagaventah received payment from Tagavilly on April
15.
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