Organized on May 1, Noah Cabinet Company engaged in the following transactions: May 1 The stockholders invested P 900,000 in this new business by purchasing capital stock. 1 Purchased merchandise on account from String Company, P 46,800; terms n/60, FOB shipping point, freight collect. 3 Sold merchandise for cash, P 28,800. 6 Paid transportation charges on May 1 purchase, P 1,440 cash. 7 Returned P 3,600 of merchandise to String Company due to improper size. 10 Requested and received an allowance of P 1,800 from String Company for improper quality of certain items. 14 Sold merchandise on account to Texas Company, P 18,000; terms 2/20, n/30, FOB shipping point, freight collect.
Organized on May 1, Noah Cabinet Company engaged in the following transactions: May 1 The stockholders invested P 900,000 in this new business by purchasing capital stock. 1 Purchased merchandise on account from String Company, P 46,800; terms n/60, FOB shipping point, freight collect. 3 Sold merchandise for cash, P 28,800. 6 Paid transportation charges on May 1 purchase, P 1,440 cash. 7 Returned P 3,600 of merchandise to String Company due to improper size. 10 Requested and received an allowance of P 1,800 from String Company for improper quality of certain items. 14 Sold merchandise on account to Texas Company, P 18,000; terms 2/20, n/30, FOB shipping point, freight collect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Organized on May 1, Noah Cabinet Company engaged in the following transactions:
May 1 The stockholders invested P 900,000 in this new business by purchasing capital stock.
1 Purchased merchandise on account from String Company, P 46,800; terms n/60, FOB shipping point, freight collect.
3 Sold merchandise for cash, P 28,800.
6 Paid transportation charges on May 1 purchase, P 1,440 cash.
7 Returned P 3,600 of merchandise to String Company due to improper size.
10 Requested and received an allowance of P 1,800 from String Company for improper quality of certain items.
14 Sold merchandise on account to Texas Company, P 18,000; terms 2/20, n/30, FOB shipping point, freight collect.
16 Issued cash refund for return of merchandise relating to sale made on May 3, P 180.
18 Purchased merchandise on account from Tan Company invoiced at P 28,800; terms 2/15, n/30, FOB shipping point, freight collect.
18 Received a bill for freight charges of P 900 from Ball Trucking Company on the purchase from Tan Company.
19 Texas Company returned P 360 of merchandise purchased on May 14.
24 Returned P 2,880 of defective merchandise to Tan Company. Received full credit.
28 Texas Company remitted balance due on sale of May 14.
31 Paid Tan Company for the purchase of May 18 after adjusting for transaction of May 24.
31 Paid miscellaneous selling expenses of P 7,200.
31 Paid miscellaneous administrative expenses of P 10,800.
From the data for Noah Cabinet Company:
Required:
Journalize the transactions using the periodic inventory method. Round all amounts to the nearest dollar.
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