BM1705

Name: DATE: SCORE:

Recording Merchandising Transactions Using Periodic Inventory System (9 items x 3 points)

Assuming that Mac Company uses the periodic inventory system, prepare the journal entries to the following transactions:

Sold merchandise to A Company on credit, terms n/30, FOB shipping point, P105,000 (cost,
July 01
P63,000).
02 Purchased merchandise on credit from B Company, terms n/30, FOB shipping point, P190,000.

02 Paid Custom Freight P14,500 for freight charges on merchandise received.

Purchased merchandise on credit from C Company, terms n/30, FOB shipping point, P180,000, including
09
P10,000 freight costs paid by C Company.
Accepted from A Company a return of merchandise, which was returned to inventory, P15,000 (cost,
11
P9,000).
14 Returned for credit P30,000 of merchandise purchased on July 2.

16 Sold merchandise for cash, P50,000 (cost, P30,000).

22 Paid B Company for purchase of July 2 less return on July 14.

23 Received full payment from A Company for his July 1 purchase, less return on July 11.

Date Particular Debit Credit

July 1 Accounts receivable P105,000
Sales P105,000
To record merchandise sold on credit to A
Company

2 Purchases P190,000
Accounts payable P190,000
To record merchandise purchased on credit to
B Company

2 Freight-in P14,500
Cash P14,500
To record payment of freight on merchandised
purchased

9 Purchases P170,000
Freight-in P10,000
Account payable P180,000
To record merchandise purchased on account
including freight from C Company

11 Sales Returns and Allowances P15,000

Accounts receivable P15,000
To record credit granted to Mac Company for
returned merchandise

14 Accounts payable P30,000

 Purchase Returns and Allowances P30,000
To record return of merchandise purchased
form B Company

16 Cash P50,000
Sales revenue P50,000
To record merchandise sold for cash

22 Accounts payable P160,000

Cash P160,000
To record payments of merchandised
purchased less return on July 14

23 Cash P90,000
Accounts receivable P90,000
To record payment received for merchandise
sold less return on July 1

Reference
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Accounting principles (12th ed.). United States of America: John
Wiley & Sons, Inc.

05 Activity 5 *Property of STI

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