Problem #5 Purchases and Sales Transactions During the month of April 2010, the Mary Paz Abad Company and the Nelson Palete Supply Company entered into the following transactions. Abad purchased merchandise on account from Palete, P243,000. Terms: FOB shipping point; 3/10, n/30. Paid freight charges amounting to P4,000. Apr. 5 Abad purchased merchandise on account from Palete, P470,000. Terms: FOB destination; 3/10, n/30. Freight charges amounted to P7,000. Abad returned P18,000 of merchandise to Palete from the Apr. 5 purchase. 10 Abad paid Palete the amount due on the Apr. 5 transaction less returns and discounts. 11 Abad paid the transportation charges on the Apr. 7 shipment. 14 Abad paid Palete the amount due from the Apr. 7 transaction. Abad purchased merchandise from Palete on account, P270,000. Terms: 20% trade discount; FOB shipping point; 3/10, n/30. 21 Freight charges on the Apr. 21 transaction amounted to P3,000 and were paid by Åbad. 25 26 Abad paid Palete the amount due on the Apr. 21 transaction. Required: 1. Prepare the journal entries for Mary Paz Abad Company. 2. Prepare the journal entries for Nelson Palete Company.
Problem #5 Purchases and Sales Transactions During the month of April 2010, the Mary Paz Abad Company and the Nelson Palete Supply Company entered into the following transactions. Abad purchased merchandise on account from Palete, P243,000. Terms: FOB shipping point; 3/10, n/30. Paid freight charges amounting to P4,000. Apr. 5 Abad purchased merchandise on account from Palete, P470,000. Terms: FOB destination; 3/10, n/30. Freight charges amounted to P7,000. Abad returned P18,000 of merchandise to Palete from the Apr. 5 purchase. 10 Abad paid Palete the amount due on the Apr. 5 transaction less returns and discounts. 11 Abad paid the transportation charges on the Apr. 7 shipment. 14 Abad paid Palete the amount due from the Apr. 7 transaction. Abad purchased merchandise from Palete on account, P270,000. Terms: 20% trade discount; FOB shipping point; 3/10, n/30. 21 Freight charges on the Apr. 21 transaction amounted to P3,000 and were paid by Åbad. 25 26 Abad paid Palete the amount due on the Apr. 21 transaction. Required: 1. Prepare the journal entries for Mary Paz Abad Company. 2. Prepare the journal entries for Nelson Palete Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem #5 Purchases and Sales Transactions During the month of April 2010, the Mary Paz Abad Company and the Nelson Palete Supply Company entered into the following transactions. Abad purchased merchandise on account from Palete, P243,000. Terms: FOB shipping point; 3/10, n/30. Paid freight charges amounting to P4,000. Apr. 5 Abad purchased merchandise on account from Palete, P470,000. Terms: FOB destination; 3/10, n/30. Freight charges amounted to P7,000. Abad returned P18,000 of merchandise to Palete from the Apr. 5 purchase. 10 Abad paid Palete the amount due on the Apr. 5 transaction less returns and discounts. 11 Abad paid the transportation charges on the Apr. 7 shipment. 14 Abad paid Palete the amount due from the Apr. 7 transaction. Abad purchased merchandise from Palete on account, P270,000. Terms: 20% trade discount; FOB shipping point; 3/10, n/30. 21 Freight charges on the Apr. 21 transaction amounted to P3,000 and were paid by Åbad. 25 26 Abad paid Palete the amount due on the Apr. 21 transaction. Required: 1. Prepare the
Transcribed Image Text:Problem #5
Purchases and Sales Transactions
During the month of April 2010, the Mary Paz Abad Company and the Nelson Palete
Supply Company entered into the following transactions.
Abad purchased merchandise on account from Palete, P243,000.
Terms: FOB shipping point; 3/10, n/30. Paid freight charges
amounting to P4,000.
Apr. 5
Abad purchased merchandise on account from Palete, P470,000.
Terms: FOB destination; 3/10, n/30. Freight charges amounted
to P7,000.
Abad returned P18,000 of merchandise to Palete from the Apr. 5
purchase.
10
Abad paid Palete the amount due on the Apr. 5 transaction less
returns and discounts.
11
Patete paid the transportation charges on the Apr. 7 shipment.
14
Abad paid Palete the amount due from the Apr. 7 transaction.
Abad purchased merchandise from Palete on account, P270,000.
Terms: 20% trade discount; FOB shipping point; 3/10, n/30.
21
Freight charges on the Apr. 21 transaction amounted to P3,000 and
were paid by Åbad.
25
26
Abad paid Palete the amount due on the Apr. 21 transaction.
Required:
1. Prepare the journal entries for Mary Paz Abad Company.
2. Prepare the journal entries for Nelson Palete Company.
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