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BAINTE1L - Merchandising Sample Problems
BAINTE1L - Merchandising Sample Problems
On March 1, 2021, Wendy Cortez Wish Enterprise sold merchandise with a 250,000 list price.
Trade Discount Credit Terms Date Paid
a. 30% 2/10, n/30 March 9
b. 40% 1/10, n/30 March 22
GOODS IN TRANSIT
The following are the related freight cost and shipping terms of Buyer Company and Seller Company
whose trading transactions are on account:
Freight Charge Shipping Terms
1. 20,000 FOB Shipping Point, Freight Collect
2. 18,000 FOB Destination, Freight Prepaid
3. 27,000 FOB Shipping Point, Freight Prepaid
4. 11,000 FOB Destination, Freight Collect
Journal entries on the books of:
1. Buyer Company
2. Seller Company
PURCHASE TRANSACTIONS
Kiara owns a general merchandise store in Davao. The following are some of her transactions for
September 2023:
Sept 1 Bought merchandise from Winter Store in Cebu, 49,280. Terms: 25% down payment,
balance
2/10, n/30 FOB Cebu.
2 Paid the freight on the goods bought yesterday, 3,160
3 Received a credit memo from Winter Store for goods returned 5,040.
4 Bought merchandise from Rainy Store in Manila, 86,240. Terms: 30% down, balance
2/10, n/30, FOB Davao, freight prepaid
5 Received a credit memo from Rainy Store as allowance on damaged goods, 3,696.
6 Bought goods from Windy Store of Pangasinan, 134,400. Terms: 40% down, 12-day,
12% 30,000 note, balance 2/10, n/30, FOB Pangasinan, freight prepaid.
7 Received a debit memo from Windy Store for the freight that she paid on the
shipment yesterday 7,840.
8 Received a credit memo from Windy Store for goods returned, 7,280.
11 Paid Honda in full of account.
13 Paid the telephone bill to PLDT, 3,808.
14 Paid in full the account due to Rainy Store.
15 Paid salaries of store employees, 9,500 less 4% tax withheld.
16 Paid Windy Store in full of open account.
18 Paid the note due to Windy Store.
Journalize the above transactions.
SALES TRANSACTIONS
Cade Yager owns a general merchandise store in Bohol. The following are some of his transactions
for October 2023:
Oct 1 Sold merchandise to ABC Gen. Merchandise of Palawan, 36,960. Terms: 2/10, n/30
FOB Palawan, freight prepaid.
2 Paid the freight on the sale yesterday, 2,016.
3 Issued a credit memo to ABC Gen. Merchandise for defective goods Returned, 2,800.
4 Sold merchandise to Sasha Blouse of Pampanga, 42,560. Terms: 20% down, balance
2/5, 1/8, n/30, FOB Bohol, freight prepaid
5 Paid the freight on the sale yesterday, 1,120.
6 Issued a credit memo to Blouse as allowance on damaged goods, 3,024.
7 Sold merchandise to XYZ Gen. Merchandise of Batangas, 63,840. Terms: 30% down,
18-day, 18% 30,000 note, balance 2/10, n/30, FOB Batangas, freight collect.
8 Issued a credit memo to XYZ Gen. Merchandise for the freight that she paid on the
sale yesterday 2,688.
11 Collected in full the open account due from Blouse.
17 Collected from XYZ Gen. Merchandise in full of open account.
25 Collected the note due from XYZ Gen. Merchandise.