A sale on June 21, 2023 with terms n/10 eom is due to be 9.

9. Freight charges borne by the seller are debited to

collected by July 10. (1 point) Transportation Out and presented as Operating
2. A customer who purchased merchandise on February Expenses in the income statement.
28, 2020 with terms to 2/20, n/30 and paid the same on 10. Net sales is Gross sales less Sales Discounts and
March 19, 2021 cannot avail the 2% percent purchase Sales Returns and Allowances.
discount. (2 points) 11. Rhaella Traders sold merchandise totaling 17,000.00
3. A customer who purchased goods on cash basis
FOB shipping point, freight prepaid; terms 2/10, n/30.
costing 95,000.00 with 20% and 25% trade discounts
The transportation costs amounted to 1,900.00. The
shall ₱
pay 75,000.00. (2 points)₱ entry to record the sales transaction would be:
4. A sale on account is recorded in the books as debit to Accounts Receivable 18,900.00
Accounts Receivable and credit to Sales amounting to the Sales 17,000.00
amount of the list price. (1 point) Cash 1,900.00
5. With freight terms FOB shipping point, freight collect,
the buyer pays the shipper. (2 points) Part 2. Prepare the journal entries under (a) perpetual
6. With freight terms FOB destination, freight prepaid, the inventory system (b) periodic inventory system.
buyer shoulders the transportation costs. (2 points) Problem 1. On January 1, 2023, Entity A had an inventory
7. With freight terms FOB destination, freight collect, the balance of P9,000. The following transactions affected
seller shoulders the transportation costs. (2 points) Entity A's inventory during the year:
8. With freight terms FOB shipping point, freight prepaid, 1. Purchased goods worth P130,000 on account.
the buyer shoulders the transportation costs. (2 points)
2. Paid freight of P5,000 on the purchase above.
9. Freight charges borne by the seller are debited to
3. Returned damaged goods worth P3,000 to the
Transportation Out and presented as Operating Expenses
in supplier.
the income statement. (1 point) 4. Sold goods costing P128,000 for P320,000, on
10. Net sales is Gross sales less Sales Discounts and credit.
Sales Returns and Allowances. (1 point) 5. A customer returned goods with sale price of
11. Rhaella Traders sold merchandise totaling 17,000.00 2,500 and cost of P1,000.
FOB shipping point, freight prepaid; terms 2/10, n/30. The Problem 2: E-computer sales had the following
transportation costs amounted to 1,900.00. The entry to transactions:
record the sales transaction would be: (4 points) 1. Purchased merchandised priced at P47,000 on
Accounts Receivable 18,900.00 credit, terms 20, 1/15, n/30, F.O.B shipping point,
Sales 17,000.00 freight collect, P1,500
Cash 1,900.00 2. Purchased merchandise for cash, P150,000,
Midterm Quiz No.2
F.O.B destination, freight prepaid, P5,000.
Name:
50 3. Sold merchandise for P30,000 for cash (cost is
60% of the selling price)
4. Sold merchandise on account, list price P50,000.
Part 1. Write “TAMA” if the statement is correct and Terms: 10, 5/15, n/30, F.O.B destination, freight
“MALI” if it is incorrect. collect, P2,000.
1. A sale on June 21, 2023 with terms n/10 EOM is due 5. Collected sales on number 4 within the discount
to be collected by July 10. period.
2. A customer who purchased merchandise on February
28, 2020 with terms to 2/20, n/30 and paid the same Part 3. Analyze the income statement relationship and
on March 19, 2021 cannot avail the 2% percent compute for the missing amount.
purchase discount. Case 1 Case 2 Case 3
3. A customer who purchased goods on cash basis Sales P200,000 P300,000 ?
costing 95,000.00 with 20% and 25% trade discounts
Beginning inventory 50,000 50,000 ?
shall pay ₱ 75,000.00.
Purchases 150,000 ? 100,000
4. A sale on account is recorded in the books as debit to
Freight in 5,000 5,000 10,000
Accounts Receivable and credit to Sales amounting
to the amount of the list price. Purchase discount 2,000 2,000 5,000
5. With freight terms FOB shipping point, freight collect, Goods available for ? ? 110,000
the buyer pays the shipper. sale
6. With freight terms FOB destination, freight prepaid, Ending Inventory 53,000 36,000 ?
the buyer shoulders the transportation costs. Cost of goods sold ? ? 35,000
7. With freight terms FOB destination, freight collect, the Gross profit ? 83,000 50,000
seller shoulders the transportation costs.
8. With freight terms FOB shipping point, freight prepaid,
the buyer shoulders the transportation costs.
Part 4. Compute for the sales, total goods available
for sale, ending inventory, ending inventory per unit
and cost of goods sold using the following methods:
1. FIFO Periodic
2. FIFO Perpetual
3. Weighted Average Method
4. Moving Average Method

Beginning Inventory 2,000 units worth P40,000.

Purchases during January 2023:

Date Units Total Cost
1/5 10,000 P250,000
1/10 5,000 112,500
1/15 15,000 450,000
1/20 12,000 312,000
1/25 15,000 412,000

Sales during January 2023:

Date Units Total Cost
1/8 9,000 P450,000
1/12 7,000 350,000
1/18 12,000 600,000
1/21 13,000 650,000
1/30 16,000 800,000