NANCY MULLES DISTRIBUTORS

SCRIPT

Bringas: Now, we’re moving on to Nancy Mulles Distributors Journal Entry during the
Month of April 2019.
Bringas: This are the transactions that she entered. During April 5, Gevera purchased
merchandise on account from Mulles, worth P 243,000. In terms of FOB shipping point;
3/10, n/30. And paid freight charges amounting to P 4,000.
Bringas: In recording the entry of this transaction. We debit P 243,000 in Accounts
Receivable and credited the same amount in sales. This is to record the merchandise
being sold to Gevera.
Borja: Next transaction is April 7. Gevera purchased merchandise on account from
Mulles, worth of P 470,000. In terms of FOB Destination; 3/10, n/30. With freight
charges amounted to P 7,000.
Borja: In recording the entry of this transaction. P 470,000 is being debited in Accounts
Receivable and Credited the same amount in Sales.
Ferrolino: During April 8, Gevera returned P 18,000 of merchandise to Mulles from the
purchased last April 5.
Ferrolino: To record this entry, we debited P 18,000 in sales returns and allowances
and credited the same amount in accounts receivable. This is to record the return
merchandise.
Villagomez: Next transaction is April 10. Gevera paid Mulles the amount due on the
April 5 transaction less returns and discounts.
Villagomez: To record this entry, we debited P 218,250 in cash account and P 6,750 in
sales discounts. And then, we credited P 225,000 in account receivables. This is to
record the paid amount from Gevera.
Bringas: During April 11, Mulles paid the transportation charges on the April 7,
shipment.
Bringas: To record this entry, P7,000 is debited in Transportation Out account and
credited same amount in cash account. This is to record the freight charges during the
transaction.
Borja: For April 14 transaction, Gevera paid Mulles the amount due from April 7
transaction.
Borja: To record this entry. We debited P455,900 in cash account and P14,100 in sales
discounts. And credited P470,000 in accounts receivable. This is to record the payment
from Gevera.
Ferrolino: Next transaction is April 21, Gevera purchased merchandise from Mulles on
account, worth of P270,000. In terms of, 20% trade discount; FOB Shipping Point; 3/10,
n/30.
Ferrolino: To record this entry, P216,000 is debited in accounts receivable and credited
the same amount in sales. This is to record the merchandise on credit.
Villagomez: For the last transaction, we have April 26. Gevera paid Mulles the amount
due on the April 21 transaction.
Villagomez: To record this entry. We debited P209,520 in cash account and P6,480 in
sales discount. And credited 216,000 on accounts receivable. This is to record the paid
amounts due on the April 21 transaction.
Now that we make the entered amounts balance, it means that our entries are correct.
We hope that this presentation expand your knowledge in making Journal Entry. Thank
you for watching and listening. Have a great day and Godbless!