Smash It the leading sports store in the region. It was built and operated by Mateo Tan its sole proprietor. At the beginning of the month of November, the general ledger of Smash It contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and Mateo, Capital- P65,000, Transactions that occurred during November are as follows: Nov 3 Purchased merchandise inventory on account from Sofia Apparel. Total cost was P 24,500., Terms: FOB Destination, 3/10, net45. The purchase is recorded net of discount. Goods ordered last November 3 arrived at the Smash It warehouse. 8. Full payment to Sofia Apparel was made. Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P 12,300. Cash was received upon payment. 14 17 Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the inventory amounted to 75% of the cost of inventory sold. 18 25% of the merchandise sold last November 17 were defective. These were returned. Credit memo was issued by smash It. 23 Received full payment in settlement of obligation incurred by See Corporation last November 17. Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory system 2. Prepare general ledger 3. Prepare a Trial Balance as of November 30, 2016.
Smash It the leading sports store in the region. It was built and operated by Mateo Tan its sole proprietor. At the beginning of the month of November, the general ledger of Smash It contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and Mateo, Capital- P65,000, Transactions that occurred during November are as follows: Nov 3 Purchased merchandise inventory on account from Sofia Apparel. Total cost was P 24,500., Terms: FOB Destination, 3/10, net45. The purchase is recorded net of discount. Goods ordered last November 3 arrived at the Smash It warehouse. 8. Full payment to Sofia Apparel was made. Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P 12,300. Cash was received upon payment. 14 17 Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the inventory amounted to 75% of the cost of inventory sold. 18 25% of the merchandise sold last November 17 were defective. These were returned. Credit memo was issued by smash It. 23 Received full payment in settlement of obligation incurred by See Corporation last November 17. Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory system 2. Prepare general ledger 3. Prepare a Trial Balance as of November 30, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Smash It the leading sports store in the region. It was built and operated by Mateo Tan its
sole proprietor. At the beginning of the month of November, the general ledger of Smash It
contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and
Mateo, Capital- P65,000, Transactions that occurred during November are as follows:
Nov 3
Purchased merchandise inventory on account from Sofia Apparel. Total cost was
P 24,500., Terms: FOB Destination, 3/10, net45. The purchase is recorded net
of discount.
Goods ordered last November 3 arrived at the Smash It warehouse.
8.
Full payment to Sofia Apparel was made.
Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P
12,300. Cash was received upon payment.
14
17
Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the
inventory amounted to 75% of the cost of inventory sold.
18
25% of the merchandise sold last November 17 were defective. These were
returned. Credit memo was issued by smash It.
23
Received full payment in settlement of obligation incurred by See Corporation
last November 17.
Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory
system
2. Prepare general ledger
3. Prepare a Trial Balance as of November 30, 2016.
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