Name: Course & Year: Dec.

14, 2020

INSTRUCTIONS: Make the journal entries for the following transactions.

"Life Goes On Company" uses periodic inventory system. The company has the following transactions
occurred for the month of August 2018.
2 Bought merchandise on account from Nerd Oks, Ltd., P125,000 net of 12% VAT. Term: 2/10, N/30.
4 Bought for cash from Olats Mfg. amounting to P96,000 plus of 12% VAT.
6 Damaged goods discovered costing P10,000 was returned to Nerd Oks, Ltd.
9 Sold P35,000 worth of merchandise to EnBC Co. on account, net of 12% VAT. Term: 1/5, N/15.
1
2 Made a full payment of account to Nerd Oks, Ltd.
1
3 Received full amount receivable from EnBC. Co. after accounting for P4,000 worth of returned goods

Fundamentals of Accounting 1|Page