Record the transactions made for the month of March 2020
The following are transactions of Mariano Lerin Bookstore for March 2020:
March
2 Purchased merchandise on credit from Digao Publishers; terms 2/10, n/30, FOB destination, P74,000
3 Sold merchandise on credit to Detoya Book Shop, terms 1/10, n/30, FOB shipping point, P10,000
5 Sold merchandise for cash, P70,000
6 Purchased and received merchandise on credit from Easy Bookstore, terms 2/10, n/30, FOB shipping point, P42,000
7 Received freight bill from Supper Express from shipment received on March 6, P570
8 Paid Rent for the month, P7,000
9 Sold merchandise on credit to Recoletos Books, terms 1/10, n/30 FOB destination, P38,000
10 Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB shipping point, P26,500, including freight costs of P500.
11 Received freight bill from Super Express for sale on March 9, P291.
12 Paid Digao Publishers for purchase of March 2.
13 Received payment in full from Detoya Book Shop's purchase of March 3
14 Paid Easy Bookstore half the amount owed on the March 6 purchase.
15 Returned faulty merchandise worth P3,000 to Digao Publishers for credit against purchase of March 10
16 Purchased office supplies from Olamit Supplies for P4,780, terms n/10.
17 Received payment from Recoletos Books for half of the purchase on March 9.
18 Paid Digao Pubishers in full
19 Sold merchandise to Ed Trading on credit, 2/10, n/30 FOB shipping point, P7,800
20 Returned for credit several items of office supplies purchased on March 16, P1,280
21 Received utilities bill for the month, P4,500
22 Issued a credit memo to Ed Trading for returned merchandise, P1,800
25 Paid purchases made on March 16
26 Paid freight entity for March 7 and 11 transaction
27 Received full payment from Ed Trading
28 Paid in full Easy Bookstore
30 Sold merchandise for Cash, P65,000
31 Paid salaries for the month, P12,000
Merchandise inventory on March 1, amounted to P23,000, and P28,000 at the end of the month.
*Required:
Record the transactions made for the month of March 2020
Prepare interim Income Statement for the month of March 2020.
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