PURCHASE Returns & Allowances

Problem #5 List Price FOB TERMS FREIGHT CHARGES

224,000 shipping pt. P4,000 P 21,000

126,00 destination pt 9,000 -
90,000 Shipping pt 2,000 7000
41,000 Shipping pt 1,000 9000
357,000 destination pt 14,000 24000

Merchandising Inventory Beginning 300,000

Purchases 1,320,000
Purchase Discount -26,400
Purchase returns &allowances -46,200
Transportation In 39,600
Total 1,587,000
Cost Of Goods sold 11,260,000
Ending Inventory 327,000

1 2
Problem #20
Net Sales 120,000 180,000
Merchandise Inventory, 1/1/2021 30,000 50,000
Net cost of purchases 110,000 110,000
Goods Available for sale 40,000 160,000
Merch Inventor, 1/31/2021 70,000 10,000
Cost of good Sold 140,000

Gross Profit 50,000 40,000

Problem #21 1 2
Net sales 100,000 130,000
Beginning Inventory 15,000 12,600
Net cost of purchase 55,000 3,000
Goods Available 70,000 15,000
Ending Inventory 10,000 25,000
Cost of goods sold 60,000 40,000
Gross profit 50,000 90,000
CREDIT TERMS TRADE DISCOUNT SETTLEMENT PRICE PROBLEM 17
Date
2/10,n/30 30% 143,258
1/10 ,n/30 20% 99,792 Mar-02
2/10,n/30 - 87,342
n/30 25% 25,000
3/10,n/30 20% 258,408
Mar-03

Mar-05

Mar-06

3 4 5

250,000 290,000 400,000

70,000 70,000 120,000 Mar-07
190,000 160,000 390,000
260,000 230,000 510,000
30,000 70,000 130,000
230,000 160,000 380,000 March 9

20,000 160,000 20,000

3 4 Mar-10
200,000 240,000
20,000 30,000
125,000 95,000
145,000 65,000
130,000 15,000
115,000 110,000 Mar-11
85,000 130,000

Mar-12
Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-22

Mar-25

Mar-26
Mar-27

Mar-28

Mar-31
 Description Pr DEBIT

Purchases 74,000
Accounts Payable
Purchased merchandise on credit; terms 2/10, n/30 FOB Destination

Accounts Receivable 10,000

Sales
Sold merchandise on Credit; terms 1/10, n/30 FOB shipping point.

Cash 7,000
Sales
To record sales of merchandise cash.

Purchases 42,000
Transportation In 570
Accounts payable
Cash

purchases on account terms 2/10, n/30 FOB shipping point, cost 570.

Freight In 570
Cash
To record Freight bill.

Account Receivable 38,000

Transport Out 570
Sales
Cash
Sales on account; terms 1/10,n/30 FOB destination.

Purchases 26,500
Transportation In 500
Accounts payable
Cash
Purchases on Credit; terms 2/10, n/30 FOB shipping pt, freight cost of 500

Freight Out 570

Cash
To record freight out sold.

Accounts Payable 74,000

 Purchases Discount
Cash
to record merchandise on march 2, Purchased discount deducted.

Account Payable 10,000

Purchases discoount
Cash
payment purchased on March 02; terms,1/10, n/30.

Accounts Payable 21,000

Cash
Partial payment on march 6.

Cash 3000
Purchase returns & Allowances
returned purchased merchandise on march 10.

Purchases 4,780
Cash
To record purchased office supplies.

Accounts payable 19,000

Cash
partial payment on march 9.

Accounts payable 23,500

Cash
Purchases discount
Full payment Purchased less returned faulty merchandise.

Accounts receivable 7,800

Sales
Sold merchandise on credit.

Sales returns and allowances 1,280

Accounts Receivable
returned office supplies on credit

Sales return & allowances 1,800

Accounts receivable
issued credit memo to Sir Ed Trading

Accounts Payable 3500

Cash
To record purchased of march 16 less returned merchandise on march 20

Freight out
 Cash 861
To record freight bill on March 7 and 11

Accounts receivable 6,600

Cash
Purchases discount
Payment received less credit returned merchandise.

Accounts Payable 21,000

Cash
Purchases discount
Paid balance on March 6, less purchased discount terms; 2/10, n/30

Cash 9730
Sales
Sales of merchandise for cash.
CREDIT

74,000

10,000

7,000

42,000
570

570

38,000
570

26,500
500

570
 1480
72,520

200
9800

21,000

3000

4,780

19,000

23,030
470

7,800

1,280

1,800

3500
 861

6468
132

20160
840

9730