Merchandising Business:What is the journal entry for the following transactions using the perpetual inventory method? Problem:The transactions for the month of June. Use markup on sales of 20% for profit.June 1 Purchased merchandise from Ariva Marketing, list price, P 35,000, trade discount 20%terms: 2/10, n/30, FOB Shipping point, freight prepaid, 1200.June 3 Purchased merchandise from Montage Trading P17,500, terms 2/10, n/30, FOBdestination.June 5 Sold merchandise on credit to Alice Enterprise, P6,250, terms: 2/10, n/30, FOB shippingpoint, freight prepaid, P450. Mark up on sales 20%.June 7 Returned defective merchandise to Montage Trading P1,500.June 9 Sold merchandise to Town Sales Company, P9,750, terms: 1/10, n/30, FOB destination.June 9 Paid freight costs on shipment to Town Sales Company, P550.June 11 Paid Ariva Marketing, the invoice of June 1 less discount.June 11 Received defective merchandise returned by Town Sales Co., P800.June 11 Paid Montage Trading the invoice of June 3 in full.June 11 Sold merchandise to Oscar Toledo, P6,550, terms: 2/10, n/30, FOB destination, freightprepaid, P480.June 11 Received a check from Alice Enterprise in full payment of account.June 17 Bought merchandise from Super Mart Company, P27,500, terms: n/30, FOB shippingpoint.June 17 Paid transportation charges on merchandise purchased from Super Mart Company,P1,050.June 18 Sold merchandise to Solomon Company, P8,750, terms: 1/10, n/30, FOB shipping point,freight prepaid, P650.June 18 Received check from Town Sales Company in full payment of account.June 19 Purchased merchandise from Manila Trading P11,400, terms : 2/10, n/30, FOBdestination.June 19 Received a check of P2,000 from Oscar Toledo as partial payment of account.June 20 Receive allowance for price adjustment for defective merchandise from Manila Trading,P1,400.June 25 Paid P10,000 to Super Mart Company as partial payment of account.June 25 Sold merchandise to Solo Marketing, P3,250, terms: 2/10 n/30, FOB shipping point.June 26 Granted price adjustment allowance for defective merchandise sold to Solo Marketing,P350.June 26 Paid Super Mart Company the invoice of June 17 in full.June 30 Received check from Solomon Company in full payment of account.June 30 Paid Manila Trading the invoice of June 20 in full.

The purpose of preparing the journal entry to enter the required transaction into debit and credit.…

The transactions for the month of June. Use markup on sales of 20% for profit. June 1 Purchased merchandise from Ariva Marketing, list price, P 35,000, trade discount 20% terms: 2/10, n/30, FOB Shipping point, freight prepaid, 1200. June 3 Purchased merchandise from Montage Trading P17,500, terms 2/10, n/30, FOB

The transactions for the month of June. Use markup on sales of 20% for profit. June 1 Purchased merchandise from Ariva Marketing, list price, P 35,000, trade discount 20% terms: 2/10, n/30, FOB Shipping point, freight prepaid, 1200. June 3 Purchased merchandise from Montage Trading P17,500, terms 2/10, n/30, FOB

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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