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Merchandising A
Merchandising A
Problem1: On June 1, 2015, ABC Co. sold merchandise with a P180,000 list
price.
Trade Discount Credit Terms Date paid A. 40% 2/10, n/30 June 8 B. 30%
1/10, n/30 June 15 C. - 2/10, n/30 June 11 D. 20% 1/15, n/30 June 14 E. 40%
n/30 June 28
Required:
For each of the sales terms, determine the following:
1. the amount recorded as sale 2. the amount of cash received
Problem2: XYZ Co. engaged in the following purchase transactions during the
month. The entity observes the policy that all returns are made one day after
the goods are received, and that all purchases are paid within the discount
period.
List Price FOB Terms Freight
Charges
Purchase Returns and Allowances
Credit Terms Trade
Discount
P114,000 Shipping Pt. P4,000 P21,000 2/10, n/30 30% 116,000 Destination
9,000 - 1/10, n/30 20%
86,000 Shipping Pt. 2,000 7,000 2/10, n/30 - 32,000 Shipping Pt. 1,000 9,000
n/30 25% 237,000 Destination 14,000 24,000 3/10, n30 20%
Required:
Using the table above, calculate the amount needed to settle each purchase.
ADJUSTING ENTRIES
Problem3:
Prepare the necessary adjusting entry/entries for each of the following
independent cases.
a) Wally Trading pays salaries of P7,500 every Saturday for a six-day week.
The
accounting period ends on December 31, which falls on a Thursday. b) The
supplies account of Cannon Co. showed a balance of P8,090. A physical count
at the end of the accounting period determined that actual supplies on hand
amounted to P2,761. c) Union commercial bought a truck on March 1, 2015
costing P432,000. The truck is
estimated to have a useful life of 6 years without a salvage value. The
accounting period ends on December 31, 2015
d) GEM Co. paid P32,400 to UNIQUE Co. on May 31, 2015 for a one year
advertising
campaign to start immediately. GEM’s accounting period ends on April 30 while UNIQUE ends on
November 30.
1) Prepare the adjusting entries on the books of GEM using:
1.a Asset Method 1.b Expense Method
2) Prepare adjusting entries on the books of UNIQUE using:
2.a Liability method
2.b income method
e) On Nov. 1, Unearned rent was credited for P135,000 representing rental
for nine months beginning on that date. The accounting period ends of
December 31.
f) Unpaid salaries at the end of the accounting period amounted to 15,000
g) Accounts Receivable balance on December 31 (end of accounting
period) is P1,500,000. Of this amount, P7,500 are estimated to be
uncollectible.
CORRECTING ENTRY