Practice Problem #2: Assume a perpetual inventory system. Journalize the following sales related transactions. a) Sold merchandise on account to LPT Co., P5,000, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was P3,000. Paid transportation charges of P200, which were added to the invoice. b) Sold merchandise on account to MMM Co., P10,000, terms FOB Destination, 1/10, n/30. The cost of the merchandise was P6,000. c) Paid transportation charges of P400 for delivery of merchandise sold to MMM Co. d) Issued credit memorandum for P2,000 to MMM Co. for merchandise returned from sale in (b). The cost of the merchandise was P1,200. e) Received amount due from LPT Co. within the discount period. f) Received amount due, less return and discount from MMM Co. g) Sold merchandise on account to LPT Co., P5,000, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was P3,000. Paid transportation charges of P200, which were added to the invoice. h) Sold merchandise on account to MMM Co., P10,000, terms FOB Destination, 1/10, n/30. The cost of the merchandise was P6,000
Practice Problem #2: Assume a perpetual inventory system. Journalize the following sales related transactions.
a) Sold merchandise on account to LPT Co., P5,000, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was P3,000. Paid transportation charges of P200, which were added to the invoice.
b) Sold merchandise on account to MMM Co., P10,000, terms FOB Destination, 1/10, n/30. The cost of the merchandise was P6,000.
c) Paid transportation charges of P400 for delivery of merchandise sold to MMM Co.
d) Issued credit memorandum for P2,000 to MMM Co. for merchandise returned from sale in (b). The cost of the merchandise was P1,200.
e) Received amount due from LPT Co. within the discount period.
f) Received amount due, less return and discount from MMM Co.
g) Sold merchandise on account to LPT Co., P5,000, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was P3,000. Paid transportation charges of P200, which were added to the invoice.
h) Sold merchandise on account to MMM Co., P10,000, terms FOB Destination, 1/10, n/30. The cost of the merchandise was P6,000
What is the Balance of your Merchandise inventory account?
Step by step
Solved in 2 steps
