Problem #5 Purchases and Sales Transactions During the month of April 2010, the Mary Paz Abad Company and the Nelson Pal- 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 7. Abad purchased merchandise on account from Palete, P470,000. Terms: FOB destination; 3/10, n/30. Freight charges amounted to P7,000. 8. 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 Ábad. 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 Pal- 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 7. Abad purchased merchandise on account from Palete, P470,000. Terms: FOB destination; 3/10, n/30. Freight charges amounted to P7,000. 8. 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 Ábad. 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.

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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