AAA purchased merchandise, the invoice for P100,500 includes P3,000 for freight

and terms 3/15, n/30. Merchandise in the amount of P2,500 was returned, and the
balance of the invoice was paid within the discount period. How much cash was
disbursed by AAA in full settlement of the account? *
Format of answer: 000,000

Invoice price = 100,500

Purchase return and allowance (2,500)
Freight (3,000)
95,000
Purchase Discount (2,850) 3%
92,150

If merchandise is sold on account to a customer for P10,000, terms FOB Shipping point, 2/10, n/30, and
the seller prepays the transportation costs of P500, the amount of the discount for early payment would
be. 

10,000(2%)
= 200

On January 2, BBB bought merchandise from CCC with a list price of P10,000. The merchandise is
subject to a trade discount of 1%, 2% and 3%, with terms 2/10, n/30, FOB Shipping point. How much
is the trade discount?

List price 10,000

Trade discount (100) 10,000 x 1%
Trade discount (198) 10,000 – 100 x 2%
Trade discount (291.06) 10,000 – 100 – 198 x 3%
9,410.94

On January 2, BBB bought merchandise from CCC with a list price of P10,000. The merchandise is
subject to a trade discount of 1%, 2% and 3%, with terms 2/10, n/30, FOB Shipping point. CCC prepaid
the freight of P500 on January 3. On January 12, BBB paid CCC. How much should BBB pay in full
settlement of its account? *

List price 10,000

Trade discount (100) 10,000 x 1%
Trade discount (198) 10,000 – 100 x 2%
Trade discount (291.06) 10,000 – 100 – 198 x 3%
Invoice Price 9,410.94
Purchase Discount (188.22) 9,410.94 x 2%
PAYMENT 9,222.72
On January 2, BBB bought merchandise from CCC with a list price of P10,000. The merchandise is
subject to a trade discount of 1%, 2% and 3%, with terms 2/10, n/30, FOB Shipping point. CCC prepaid
the freight of P500 on January 3. On January 15, BBB paid CCC. How much should BBB pay in full
settlement of its account? 

List price 10,000

Trade discount (100) 10,000 x 1%
Trade discount (198) 10,000 – 100 x 2%
Trade discount (291.06) 10,000 – 100 – 198 x 3%
9,410.94 kse wala syang discount gawa ng lagpas ng 10days.

On February 2, DDD bought merchandise with a list price of P10,000. The merchandise is subject to a
trade discount of 1%, 2% and 3%, with terms 2/10, n/30, FOB Shipping point. The seller prepaid the
freight of P500 on February 3. On February 15, DDD paid the seller. Assume DDD is a VAT registered
business and assume 12% VAT is inclusive in the amounts. What is the journal entry of February 2
transaction in the books of DDD?

List price 10,000

Trade discount (100) 10,000 x 1%
Trade discount (198) 10,000 – 100 x 2%
Trade discount (291.06) 10,000 – 100 – 198 x 3%
9,410.94

Purchases <9,411/1.12> 8,403

Input Vat <8,403. x .12> 1,008
Accounts Payable 9,411

Determine the number of days each account is past due as of December 31, 2020: (1) Customer: AAA;
Due date: September 1, 2020; Amount P10,000 

September 30 – 1 = 29

October 31 – 0 = 31

November 30 – 0 = 30

December 31 – 0 = 31

TOTAL = 121 days

On December 31, FFF has a debit balance of P200,000 outstanding accounts receivable and a credit
balance of P5,000 allowance for bad debts before adjustment. The business estimates that 3% of the
outstanding accounts receivable will be uncollectible. What is the amount of bad debts expense to be
recorded in the adjusting entry at December 31?

SOLUTION: Net realizable value (NRV) of Accounts Receivable

Allowance for uncollectible accounts Accounts Receivable P 200,000
5,000 credit balance Less: Allowance for doubtful accounts 6,000

1,000 adjusting entry NRV P 194,000

 200,000 x 3% = 6,000

5,000 – 6,000 = 1,000

GGG Company budgeted purchases of P 200,000, Cost of goods sold was P 240,000 and the desired
ending inventory was P84,000. The beginning inventory was
Beginning inventory:
Cost of goods sold 240,000
Ending inventory 84,000
Purchases (200,000)
124,000

The cost of goods sold is 70,000. Beginning and ending inventory is 20,000 and 18,000, respectively. If
freight in is 2,000 and purchase discount is P5,000. What is the amount of Purchases? *

Beginning 18,000
Ending (20,000)
2,000
70,000
72,000

The cost of goods available for sale is P200,000. The gross profit is P65,000. If net sales amounts to
P228,000 and net purchases is P198,000, what is the amount of ending inventory? *
Beginning inventory + net purchases – COGS = ending inventory.
Beginning inventory:
Net purchases: 198,000

Information taken from the books of HHH trading Company: Purchases is 125,000; Sales is 423,000;
Purchase discount is 3,700; Sales discount is 5,000; Inventory beginning is 29,000; Inventory ending is
17,000; Selling expenses is 78,000; Administrative expenses is 68,000. The gross profit is
___________?
Sales 423,000 Purchase 125,000
Sales discount (5,000) Purchase discount (3,700)
NET SALES 418,000 net purchase 121,300
Beginning 29,000
Purchases 121,300
Ending (17,000)
Cost of Goods sold 133,300

Gross profit
Net sales: 418,000
Less: Cost of Goods sold 133,300
Gross Profit 284,700

Information taken from the books of HHH trading Company: Purchases is 125,000; Sales is 423,000;
Purchase discount is 3,700; Sales discount is 5,000; Inventory beginning is 29,000; Inventory ending is
17,000; Selling expenses is 78,000; Administrative expenses is 68,000. The net income(net loss) is
___________? 
gross income — the total amount of money earned — then subtract expenses, such as
taxes and interest payments
Sales 423,000 Purchase 125,000
Sales discount (5,000) Purchase discount (3,700)
NET SALES 418,000 net purchase 121,300