FINAL ASSIGNMENT NO 3 ACCTG 121

The following are selected transactions of Sweet Comfort, distributor of imported beds, sheets, pillow
cases and comforters. Its credit terms is 2/10, N/30, FOB Destination. 12% VAT included in all invoices.
The company is VAT registered.
3 Purchased an aircon unit from Concepcion Industries at a list price of P9,000 less 5% trade discount
2/EOM, N/60. Get the invoice price and add 12% VAT.
6 Paid P1,344 for the delivery cost of the above purchase.
8 Sold merchandise to Susan Velasco in the amount of P19,040 on account. Delivery cost paid in cash,
P604.80.
10 Purchased 10 comforters from Hong Kong Sleepwell invoiced at 12,000 Hong Kong Dollars. Exchange
rate is P5.50 to a Hong Kong dollar. 12% VAT is to be added. Terms: 2/10, 1/20, N/30.
15 Received check from Susan Velasco in total payment for the purchase.
19 Sold to David Company on account, 5 Canadian bedsheets @ P1,680 each set. Freight cost paid for
the delivery , P336.
20 David reported that an item in the shipment was defective. It was agreed that David will retain the
item but will be credited for P560.
22 Paid Hong Kong Sleepwell for 5 comforters less the agreed discount.
25 Received check from David Company was 5,500 as partial payment.
28 Paid Concepcion Industries the amount due for the purchase of March 3.
Required:
a. Journalize the above transactions. Open the customer’s and supplier’s cards.
b. Post to T accounts the accounts receivable and accounts payable entries.
c. Determine the balances and reconcile with balances of customer’s and supplier’s cards.

Compute for the missing item:

Case 1 Case 2 Case 3 Case 4 Case 5

Sales 450,000 270,000 970,000 1,250,000 1,305,000

Cost of Sales 235,000 185,000 640,000 725,000 725,750

Gross Profit 215,000 85,000 330,000 525,000 579,250

Operating Expense 120,000 105,000 (420,000) 275,000 665,000

Net Profit (Loss) 95,000 (20,000) (90,000) 250,000 (85,750)

3 Purchases 8550.00
Input tax (8550.00 x .12) 1,026.00
Accounts payable 9,576.00
Purchase of Inventory on account.

6 Freight in 1,344
Cash 1,344
Paid freight charges.

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 8 Accounts Receivable 19,040.00
Freight Out 604.80
Sales 17,000.00
Output Vat (17,000 / 1.12 x .12) 2040
Cash 604.80
Sales on account and paid freight charges.

10 Purchases 66,000.00
Input tax (66,000.00 x .12) 7920.00
Accounts payable 73,920.00
Purchase on account. Terms: 2/10, 1/20, N/30

15 Cash in bank 19,040.00

Accounts Receivable 19,040.00

19 Accounts Receivable 8,400.00

Freight Out 336.00
Sales 8,400.00
Cash 336.00
Sales on account and paid freight charges.

20 Sales returns 560.00

Accounts Receivable 560.00
To record purchase returns.

22 Accounts Payable 73,920.00

Purchase discounts 739.2
Cash 73,180.8
Paid liability within the discount period.

25 Cash in bank 5,500.00

Accounts Receivable 5,500.00

28 Accounts Payable 9,576.00

Purchase discount 191.52
Cash 9,384.48

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 Customer’s Card

NAME: Susan Velasco

DATE PARTICULARS REF DEBIT CREDIT BALANCE

Mar-08 GJ1 ₱19,040.00 ₱ 19,040.00

Mar-15 Received check as payment. GJ1 ₱19,040.00 ₱ -

NAME: David Company

DATE PARTICULARS REF DEBIT CREDIT BALANCE
Mar-19 GJ1 ₱ 8,400.00 ₱ 8,400.00
20 GJ1 ₱ 560.00 ₱ 7,840.00
25 partial collection GJ1 ₱ 5,500.00 ₱ 2,340.00

Supplier’s Card

NAME: Concepcion Industries

DATE PARTICULARS REF DEBIT CREDIT BALANCE
03-Mar GJ1 ₱ 9,576.00 ₱ 9,576.00
GJ
28 Paid 1 ₱ 9,384.48 ₱ 191.52
GJ
Purchase discount 2/EOM 1 ₱ 191.52 ₱ -

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 NAME: Hong Kong Sleepwell
DATE PARTICULARS REF DEBIT CREDIT BALANCE
₱
10-Mar GJ1 ₱73,920.00 73,920.00
28 GJ1 ₱73,180.80 ₱ 739.20
less purchase discount GJ1 ₱ 739.20 ₱ 0.00

Accounts Receivable
Mar-08 ₱ 19,040.00 ₱ 19,040.00 Mar-15
Mar-19 ₱ 8,400.00 ₱ 560.00 Mar-20
₱ 5,500.00 Mar-25

₱ 27,440.00 ₱ 25,100.00
₱ 2,340.00

Accounts Payable
Mar-22 ₱ 73,920.00 ₱ 9,576.00 Mar-03
Mar-28 ₱ 9,384.48 ₱ 73,920.00 Mar-10
Mar-28 ₱ 191.52

₱ 83,496.00 ₱ 83,496.00
₱ -
Balances:
Dr. Accounts Receivable ₱ 2,340.00
Cr. Accounts Receivable ₱ -

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