Practice Exercise: fournalize the following transactions of Shore Company, a VAT registered company. uly 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30. 4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this. 6 Purchase office supplies for P5,800 cash. 7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30. 8 Purchase merchandise for P448,000 cash. 10 Cash sales for the first 15 days, P336,000. 12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30. 14 Returned defective merchandise worth P56,000 purchased on July 12. 16 Received payment from David Company for sale on July 2. 18 Received payment from Simon Trading. 20 Sold an old equipment for P30,000. 22. Paid the commission to salesmen, P50,000. For July 12 560,000/112%= 500,000 sales 500,000 x 12%-60,000 VAT If paid with discount, the discount will be computed based on the sales only, do not include the VAT Total payable Less discount (1% x 500,000) Total cash to be received 560,000 5.000 $55.000

Practice Exercise: fournalize the following transactions of Shore Company, a VAT registered company. uly 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30. 4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this. 6 Purchase office supplies for P5,800 cash. 7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30. 8 Purchase merchandise for P448,000 cash. 10 Cash sales for the first 15 days, P336,000. 12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30. 14 Returned defective merchandise worth P56,000 purchased on July 12. 16 Received payment from David Company for sale on July 2. 18 Received payment from Simon Trading. 20 Sold an old equipment for P30,000. 22. Paid the commission to salesmen, P50,000. For July 12 560,000/112%= 500,000 sales 500,000 x 12%-60,000 VAT If paid with discount, the discount will be computed based on the sales only, do not include the VAT Total payable Less discount (1% x 500,000) Total cash to be received 560,000 5.000 $55.000

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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