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Activity Merchandising Business

activity FOA

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18 views2 pages

Activity Merchandising Business

activity FOA

Uploaded by

eranaandreafaye2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A.

For each of the following situations, compute for the amount of discount and payment made within
the discount period.
a. List price P15,000. Terms 1/10, n/60 less 2%,5% trade discounts.
b. Gross invoice price P10,000. Terms 2/10,n/30.
c. Gross invoice price P6,000,Terms: 2/5, 1/10 , n/30. Partial payment on the 6 th day.

B. The following information is from the books of ABC Company:


Merchandise inventory, beginning P 2,500
Merchandise inventory, end 2,000
Sales 15,000
Freight in 400
Purchase discounts 300
Sales returns and allowances 200
Purchases 5,600
Sales discounts 100
Purchase returns and allowances. 400
Required: Compute a) net sales; b).net purchases; c). cost of goods sold ;
d) gross profit on sales

C. DEF Company had the following transactions for 2020:


Feb. 4 Purchased merchandise from XYZ Company at a list price of P50,000; terms
n/30, FOB shipping point. A trade discount of 10% and 20% was given.
6 Paid J and T Express P 1,000 for delivery cost of the purchase on February 4.
7 Upon inspection, noted that the merchandise invoiced at P10,000 in the XYZ
Company was the wrong model. Returned the incorrect merchandise to XYZ
Company.
8 Sold merchandise to Mr. Reyes in the amount of P20,000, terms 2/10, n/30 FOB
Shipping Point.
18 Received a check from Mr. Reyes in total payment of his purchase of February 8
19 Sold merchandise to Mr. Santos in the amount of P15,000; terms 2/10, n/30,
FOB Destination.
20 Paid P2,000 to J and T Express for delivery of merchandise to Mr. Santos.
21 Mr. Santos reported that an item in the shipment was defective; it was agreed
that Mr. Santos would retain the item and receive a credit of P1,000.
28. Received a check from Mr. Santos for the amount due.
Required: Journalize the above transactions.

D. Journalize the following selected transactions for Santos Shoe Store.


March 1 Bought merchandise from Ang Tibay worth P30,000 .Terms 2/10,n/60.
3 Bought furniture worth P50,000 from Manabat furniture Line. Terms 1/10/n/30.
5 Bought merchandise from Baclaran Shoe World worth P65,000.
8 Bought goods worth P150,000 from Garden Store Center. Terms 50% down, balance
with a 20 day 18% promissory note.
9 Paid freight for the Garden Store Center purchase, P5,500.
10. Bought equipment from Electroworld to be used in the store . List price P100,000
less 5% and 10% trade discounts, 1/15, n/30.
13. Paid Manabat in full by issuing a check.
15. Bought goods from Angeles Shoe Store worth P55,000. Terms P20,000 down, 1/10,
n/15.
18. Paid in full Electroworld account.
25. Paid in full the account due to Ang Tibay
28. Paid the note due to Garden Store Center.
E. Mr. Castro started selling data processing machines and equipment in 2019. The following
accounts and their balances were taken on its second year of operation ending December 31,2020:

Office rent P 20,000 Supplies used -store P 5,500


Cash and cash equivalents 399,000 Depreciation expense-store furniture- 6,000
Merchandise inventory, beg 37,500 Accounts payable 26,400
Supplies 1,000 Rent income 3,700
Accumulated depn.-office furniture 9,000 Interest expense 8,500
Office salaries 30,000 Sales returns and allowances 4,000
Notes payable 40,000 Freight in 5,000
Sales 950,000 Store rent 40,000
Purchases 400,000 Allowance for bad debts 4,800
Salaries-store 40,500 Mr. Castro, capital, beginning 100,900
Purchase discount 15,000 Accumulated depn -store furniture 9,000
Depreciation expense-office fur. 4,500 Merchandise inventory, ending 45,000
Office furniture 45,000 Mr Castro, Drawing 10,000
Accounts receivable. 38,000 Store furniture 60,000
Bad debts expense 2,800 Office supplies used 1,500

Required: Prepare in good form a multiple step income statement classifying operating expenses and a
properly classified balance sheet.

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