PROBLEM 1

Senegal purchases merchandise all on terms of 3/10, n/30. Selected transactions of Senegal are
as follow:
August 1 Bought merchandise from USA, 330,000.
3 Returned damaged goods to USA, 5,000.
11 Paid USA in full of account.
15 Purchased merchandise from Spain, 440,000
16 Received a credit memo from Spain for defective merchandise, 6,000.
25 Spain collected in full from Senegal.

REQUIRED
Journalize the above transactions

PROBLEM 2
Madrid sells all merchandise on terms 2/10, n/30. Record the following transactions of Madrid:
Sept. 5 Sold merchandise to France, 560,000.
6 Issued a credit memo to France for defective merchandise returned, 8,000.
15 Collected in full from France.
17 Sold merchandise to Serbia, 770,000.
18 Received from Serbia damaged goods sold on the 17th, 12,000.
26 Serbia paid in full the account due to Madrid.

PROBLEM 3
FIBA opened a store dealing in hardware, lumber and construction materials in August, 2017.
His transactions are as follows:

Aug. 1 Invested 4,800,000 cash, a truck worth 880,000 and store equipment worth
350,000. The business also assumed a 100,000 personal loan of FIBA with BDO.
2 Paid rent of the store as follows: Deposit for two months – 40,000; advance payment for
two months – 40,000 and rent for August – 20,000.
Bought various lumber, hardware and construction materials, 730,000. Terms: COD.
Paid Meralco for installation of electric line, 4,400.
3 Paid QMWD for installation of water meter – 3,450.
Constructed store equipment using various lumber and hardware, 36,000.
4 Bought various office equipment, 48,500 and various furniture items, 28,300.
5 Paid carpenters and painters for the construction of store equipment, 8,800.
Bought various merchandise, 1,336,840. Terms: COD
Paid the freight on various purchases of merchandise, 22,625.
Bought various store supplies, 5,300 and office supplies, 4,375.

6 Bought cement and other construction materials from Kongkong, 360,000. Terms: 2/10,
n/30.
7 Paid business license and mayor’s permit to the City Treasurer, 23,400.
Paid the BIR annual company registration fee, 1,000.
8 Purchased lauaan, apitong, maulawin and other lumber from Dingdong, 420,000. Terms:
40% down payment, 18%, 15-day note, balance, 3/10, n/50
9 Received a credit memo from Dingdong for damaged items returned, 4,600.
10 Cash sales to date, 145,400.
Paid a 1-year insurance premium on the merchandise and on the delivery truck, 13,456.
Paid truck registration fee to the Land Transportation Office, 2,770.

11 Purchased steel bars, galvanized roof and other construction materials from Emong,
456,000. Terms: 3/10, 2/15, n/60
Sold various hardware and lumber to Goyong, 180,000. Terms: 2/10, n/30
12 Issued a credit memo to Goyong as allowance on defective lumber, 3,600.
13 Purchased computer and printer from Hong, 36,000. Terms: 2/10, n/30
Sold various construction materials to Ingkong, 140,000. Terms: 30% down, 12%, 12-
day 50,000 note, balance, 3/15, 2/20, n/60.
Received a credit memo from Emong as allowance on damaged goods, 2,200.
1
 Cash sales to date, 145,945.
14 Bought old newspaper and plastic straw for packing use, 530.
15 Paid salaries of store personnel and accountant, 15,300 less 5% tax withheld.
Bought bond paper, computer ink, envelops, worksheets and staple wire, 5,960.

16 Sold cement, sand, lumber and various construction materials to Jorong, 125,000. Terms:
40% down, 15%, 15-day, 36,000 note, balance, 3/10, n/30
Paid Kongkong in full of account.
17 Paid 1,500 to workers as salary advances
18 Paid various expenses as follows: Diesel for truck for delivery of goods – 3,300, truck
repairs – 2,388, water bill, 736..
Paid in full the open account due to Dingdong
19 Issued a credit memo to Jorong for spoiled cement returned, 2,200.
20 Cash sales to date, 116,924.
Paid the telephone bill to PLDT, 1,400.

21 Collected from Goyong in full of account.

22 Paid in full the account due to Emong.
22 Sold various lumber and construction items to Mekong, 70,000. Terms: 6% and 3%
trade discount
Paid the freight on various goods sold, 16,322.
23 Paid the note due to Dingdong.
Paid in full the account due to Hong.
24 The proprietor withdrew various lumber and hardware for personal use, 15,400.
Cash sales to date, 107,938.
25 Collected the note due from Ingkong.

26 Purchased various lumber from Nonong, 28,800. Terms: COD

Collected in full the open account due from Jorong.
27 Paid Carabao Security for security services for the month, 8,000 less 2% tax withheld.
28 Paid various expenses as follows: Xerox of various documents – 150; transportation
of messenger – 125; foods for entertainment of customers – 250; miscellaneous expenses
- 886.
31 Paid salaries for the second half of August less 4% SSS contributions, 2% Pag-ibig
contributions, 1.2% Philhealth contributions and 500 salary advances, 29,660.

REQUIRED
Journalize the above transactions.