VII.

ASSIGNMENT
Name: ______________________________ Course & Section: __________________
 Fundamentals of Accounting 1
Perpetual Inventory System of a Merchandising Business

Direction/Instruction:

You are required to journalize the following transactions using Perpetual Inventory method (This

assignment will be submitted on ________________.)

Journalize the following transactions using the Periodic inventory System

Luck Sales Corporation engaged in the following transactions during June of the current year:

June 3 – Purchased inventory on credit terms of 1/10 net eom (end of month), P 16,000.
9 – Returned 40 percent of the inventory purchased on June 3. It was f=defective
12 – Sold goods for cash, P 9,200 (cost, P 5,500).
15 – Purchased goods of P 51, 000 les P 1,000 quantity discount
16 – Paid a P 2,600 freight bill on goods purchased
18 – Sold inventory on credit term 2/10, n/30, P 20,000 (cost P 11,800).
22 – Received damaged goods from the customer of the June 18 sale, P 8.000 (cost P 4,800).
24 – Borrowed money from the bank to take advantage of the discount offered on June 15
purchase. Signed a note payable to bank for the net amount

28 – Received cash in full settlement of the account from yhe customer who purchased inventory on
June 18
29 – Paid the amount owed on account from the purchase of June 3.
30 – Purchased inventory for cash, P 9,000, less a quantity discount of P 350
Required:
Journalize the following transactions no need for explanation

Date Transactions Journal Entries Debit Credit

03-June Purchased inventory Purchases P16,000

on credit terms of Accounts Payable P16,000
1/10 net eom (end of
month), P 16,000.
09-June Returned 40 percent P6,400
of the inventory Accounts Payable
Purchase returns and P6,400
purchased on June
allowances
3. It was f=defective
12-June Sold goods for Cash P15,000
cash, P 9,200
Sales P15,000
(cost, P 5,500).
12-June Sold goods for Cost of goods sold P5,500
cash, P 9,200
Merchandise Inventory P5,500
(cost, P 5,500).
15-June
Purchases P51,000
P1,000
Purchased goods of
P 51, 000 les P 1,000 Purchase Discount
quantity discount Cash P50,000
 Fundamentals of Accounting 1
Perpetual Inventory System of a Merchandising Business

16-June Paid a P 2,600 Freight in P2,600

freight bill on
Cash P2,600
goods purchased
18-June Sold inventory on Accounts Receivables P20,000
credit term 2/10, n/30, Sales P20,000
P 20,000 (cost P
11,800).
18-June Sold inventory on Cost of goods sold P11,800
credit term 2/10, n/30, Merchandise Inventory P11,800
P 20,000 (cost P
11,800).
22-June Received damaged Sales returns and allowances P8,000
goods from the Accounts Receivables P8,000
customer of the June
18 sale, P 8.000 (cost
P 4,800).
22-June Received damaged Merchandise Inventory P4,800
goods from the Cost of goods sold P4,800
customer of the June
18 sale, P 8.000 (cost
P 4,800).
24-June Borrowed money from Cash P50,000
the bank to take Notes Payable P50,000
advantage of the
discount offered on
June 15 purchase.
Signed a note payable
to bank for the net
amount.
28-June Received cash in full Cash P11,760
settlement of the Sales Discounts P240
account from the Accounts Receivables P12,000
customer who
purchased inventory
on June 18.
29-June Paid the amount Accounts Payable P16,000
owed on account Cash P16,000
from the purchase of
June 3.
30-June Purchased Purchases P9,000
inventory for cash, Purchase Discounts P350
P 9,000, less a Cash P8,650
quantity discount
of P 350
P P
Fundamentals of Accounting 1
Perpetual Inventory System of a Merchandising Business

After your long journey of reading and accomplishing the

module, let us now challenge your mind by answering the
evaluation part of this module.