JOURNALIZING MERCHANDISING TRANSACTIONS Arcino - 050314

1. The following selected transactions were completed by Sammy Trading during July of the current year. Assume 12%
VAT is excluded.
July 1 Purchased merchandise from Manila Sales Company, P40,000, terms: 2/10, n/eom, FOB shipping point,
freight prepaid, P1,250.
10 Paid Manila Sales Company invoice of July 1 less discount.
13 Purchased merchandise from Davao Wholesalers Co. P25,000, terms: 1/10, n/30, FOB destination.
15 Returned defective merchandise to Davao Wholesalers P7,500.
18 Bought merchandise from Bacolod Trading Co. P57,500, terms: n/eom, FOB Shipping point.
18 Paid freight charges on merchandise purchased from Bacolod Trading, P1,200.
19 Purchased merchandise from Mercury Sales Co. P37,500, terms: 2/10, n/30. FOB Destination.
22 Paid Davao Wholesalers Co. in full of account.
29 Paid Mercury Sales Co. in full of account.
31 Paid Bacolod Trading Co. in full of account.

Required: Journal entries to record the above transactions.



2. The following selected transactions were completed by Fortune Sales Company during August of the current year.
Assume 12% VAT is included.
Aug 2 Sold merchandise on account to Pedro Sales, P3,360, terms: 2/10, n/eom, FOB shipping point.
3 Sold merchandise for cash to customers, P9,520.
6 Sold merchandise on credit to Juan Castro, P7,280, terms: 2/10. n/30 FOB shipping destination, freight
prepaid, P500.
11 Collected from Pedro Sales invoice of August 1.
14 Sold merchandise to Josies Store, P11,760, terms: 1/10, n/30, FOB destination.
14 Paid transportation cost on shipment tp Josies Store, P600.
15 Collected from Juan Castro invoice of August 6.
17 Received defective merchandise sold to Josies Store, P1,120.
20 Sold merchandise to Alex Modesto, P5,376, terms: 2/10, n/30, FOB shipping point, freight prepaid, P400.
21 Received check of P5,000 from Josies Store as partial payment on account.
24 Received check from Josies Store in full payment on account.
30 Received check from Alex Modesto in full payment on account.

Required: Journal entries to record the above transactions.