Activity for practice:

Goo-long Company entered into the following transactions during September 2021.
Sept 1 Purchased 1,000 tires at a cost of P600 per tire. Terms of payment: 1/10, n45.
Sept 2 Paid trucking firm P8,000 to ship the tires purchased on September 1.
Sept 3 Sold 500 tires to a customer on account for P1,000 each. Terms: 3/15, n30.
Sept 5 Purchased 600 tires at a cost of P60 per tire. Terms of payment: 2/10, n30.
Sept 6 Paid trucking firm P5,000 to ship tires purchased on September 5.
Sept 7 Returned 150 of the tires purchased on September 2 because they were defective.
Sept 9 Paid for tires purchased on September 1.
Sept 15 Received a full payment from a customer for tires sold last September 3.
Sept 18 Sold 700 tires to a customer for P1,000 each. Terms, 1/10, n30.
Sept 20 Paid tires purchased on September 5
Sept 21 Paid rent for the month, P3,000.
Sept 29 Received cash from sale of tires on September 18.
Sept 30 Paid employees’ salaries, P2,000.

Requirements:
1. Journalize the transactions using both perpetual and periodic system.
2. Compute the cost of sales.
3. Prepare an income statement.

Wala munang provided na chart of accounts para mas mabilis kayong ma-familiarize sa gagamitin. 😊