Account Title Debit Credit

Income Summary 150,000

Merchandise inventory 150,000

Merchandise inventory 300,000

Income Summary 300,000

Bad debt expense 4,000

Allowance for Bad Debts 4,000

Interest receivable 150

Interest income 150

Depreciation expense 50,000

Accumulated Depreciation - Building 50,000

Interest expense 125

Interest payable 125
 Account Title Debit Credit
Income Summary 150,000
Merchandise inventory 150,000

Salaries and wages 20,000

Salaries payable 20,000

Prepaid advertising 15,000

Advertising expense 15,000
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.

Account Title Debit Credit

Furniture and Fixtures 134,000
Freight-in 6,160
Accounts Payable 134,000
Cash P6,160

May 10 Paid half of the amount owing to Ang's Furniture.

Account Title Debit Credit

Accounts Payable 67,000
Cash 65,660
Purchase Discount 1,340

May 14 Sold to Danilo's Apartelle furniture worth P69,440 on account. FOB Destination.

Account Title Debit Credit

Accounts Receivable 69,44
Cash 69,440

May 15 Paid Ang's Furniture the account that is due.

Account Title Debit Credit

Accounts Payable 67,000
Cash 65,660
Purchase Discount 1,340

May 16 Paid for shipment of furniture to Danilo's Apartelle, P1,680.

Account Title Debit Credit

Freight-out 1,680
Cash 1,680

May 17 P2,632 worth of furniture was returned for credit by Danilo's Apartelle.

Account Title Debit Credit

Sales Return 2,632
Accounts Receivable 2,632

May 24 Danilo's Apartelle paid its account in full.

Account Title Debit Credit

Cash 66,808
Accounts Receivable 66,808

May 25 Purchased furniture from Hill Furnishings, P101,360. Terms 50% down, balance 2/10, n/30. FOB Shipping Point,
P5600 Freight Collect.

Account Title Debit Credit

Furniture and Fixtures 101,360
Freight-in 5,600
 Accounts Payable 50,800
Cash 56,280

May 29 Sold furniture to Mr. Ramos of Ayala Alabang P64,400. Terms: Down payment of P25000, balance on account. FOB
Destination, Freight Prepaid P560.

Account Title Debit Credit

Accounts Receivable 39,440
Cash 25,000
Sales 64,440

Freight-out 560
Cash 560

May 31 Paid Hill Furnishings the account that is due.

Account Title Debit Credit

Accounts Payable 50,680
Cash 49,666
Purchase Discount 1,014