Problem 14

Journalizing Merchandising Transactions

Virginia Ruben Candles engages in the following transactions in August 2021:

August 1 Sold Merchandise to O. Lacierda Trading on credit, terms n/30, FOB shipping point,
P21,000

3 Purchased merchandise on credit from R. Cabellon Stores, terms n/30. FOB shipping
point, P38,000

5 Paid SouthMin Freight for freight charges on merchandise received, P290

6 Purchased store supplies on credit from Ipil Supplies, ter ms n/20, P6,360.

8 Purchased merchandise on credit from Pagadian Corp., terms n/30, FOB shipping
point, P36,000. Pagadian Corp. paid P200 for freight costs

12 Returned some of the merchandise received on Aug. 3 for credit, P6,000

15 Sold merchandise on credit to Columban Stores, terms n/30, FOB shipping point,
P12,000

16 Returned some of the store supplies purchased on Aug. 6 for credit, P2,000

17 Sold merchandise for cash, P10,000

18 Accepted for full credit a return from O. Lacierda Trading , P2,000

24 Paid accounts to R. Cabellon Stores

25 Received full payment from O. Lacierda Trading

Required: Prepare the journal entries