Parisian Store is engaged in selling furniture on credit term of 2/10, n/30.

Prepare journal entries for May,

open customers and creditors cards, post to the general ledger for Accounts Receivable and Accounts
Payable. 

May 5     Received furniture from Ang's Furniture Mart P134 000. Terms: 2/10, n/30. FOB Shipping Point,
Freight Collect. Cash was paid for the freight P6,160.
May 10   Paid half of the amount owing to Ang's Furniture.
May 14   Sold to Danilo's Apartelle furniture worth P69,440 on account. FOB Destination.
May 15   Paid Ang's Furniture the account that is due.
May 16   Paid for shipment of furniture to Danilo's Apartelle, P1,680.
May 17   P2,632 worth of furniture was returned for credit by Danilo's Apartelle.
May 24   Danilo's Apartelle paid its account in full.
May 25   Purchased furniture from Hill Furnishings, P101,360. Terms 50% down, balance 2/10, n/30. FOB
Shipping Point, P5600 Freight Collect.
May 29   Sold furniture to Mr. Ramos of Ayala Alabang P64400. Terms: Down payment of P25000,
balance on account. FOB Destination, Freight Prepaid P560.
May 31   Paid Hill Furnishings the account that is due.

May 5     Received furniture from Ang's Furniture Mart P134 000. Terms: 2/10, n/30. FOB Shipping Point,
Freight Collect. Cash was paid for the freight P6,160.
Dr. Purchases P134,000
Dr. Freight in P6,160
Cr. Accounts Payable P134,000
Cr. Cash P6,160
 
May 10   Paid half of the amount owing to Ang's Furniture.
Dr. Accounts Payable P67,000
Cr. Cash P65,660
Cr. Purchase discount P1,340
 
May 14   Sold to Danilo's Apartelle furniture worth P69,440 on account. FOB Destination.
Dr. Accounts Receivable P69,440
Cr. Sales P69,440
 
May 15   Paid Ang's Furniture the account that is due.
Dr. Accounts Payable P67,000
Cr. Cash P65,660
Cr. Purchase discount P1,340
 
May 16   Paid for shipment of furniture to Danilo's Apartelle, P1,680.
Dr. Freight out P1,680
Cr. Cash P1,680
 
May 17   P2,632 worth of furniture was returned for credit by Danilo's Apartelle.
Dr. Sales Return P2,632
Cr. Accounts receivable P2,632
 
May 24   Danilo's Apartelle paid its account in full.
Dr. Cash P66,808
Cr. Accounts receivable P66,808
 
May 25   Purchased furniture from Hill Furnishings, P101,360. Terms 50% down, balance 2/10, n/30. FOB
Shipping Point, P5600 Freight Collect.
Dr. Purchases PP101,360
Dr. Freight in P5,600
Cr. Accounts Payable P50,680
Cr. Cash P56,280
 
May 29   Sold furniture to Mr. Ramos of Ayala Alabang P64400. Terms: Down payment of P25000,
balance on account. FOB Destination, Freight Prepaid P560.
Dr. Accounts Receivable P39,400
Dr. Cash P25,000
Cr. Sales P64,400
#
Dr. Freight out P560
Cr. Cash P560
 
May 31   Paid Hill Furnishings the account that is due.
Dr. Accounts Payable  P50,680
Cr. Cash P49,666
Cr. Purchase discount P1,014

Account Title Debit Credit

Income summary 150,000  

Merchandise inventory, Jan 1   150,000

to remove the beginning inventory

Merchandise inventory, Dec 31 300,000  

Income summary   300,000

to set-up the ending inventory

Bad debt expense  4,000  

Allowance for Bad Debts   4,000

to increase the bad debt to 20% of the accounts receivables: (120,000 x 20%) - 20,000

Interest receivable 150  

Interest income   150

to record the accrued interest income: 30,000 x 6% x 30/360

Depreciation expense 50,000  

Accumulated Depreciation-Bldg   50,000

to record current year's depreication: 500,000 x 10%

Interest expense 125  

Interest payable   125

to record accrued interest expense: 50,000 x 6% x 15/360

 Account Title Debit Credit

Salaries and wages 20,000  

Salaries payable   20,000

to record accrued salaries

Prepaid advertising 15,000  

Advertising expense   15,000

to record the prepaid advertising