MEKE-MI CO.

NUKO TRADING
Buyer’s Point of View Seller’s Point of View
a. Purchased merchandise for ₱ 55,000 a. Sold merchandise for cash ₱ 55,000
Purchases 55,000 Cash 55,000
Cash 55,000 Sales 55,000
b. Purchased merchandise ₱ 150,000 b. Sold merchandise on account ₱ 150,000
on account. Terms: 2/n, n/60 on account. Terms: 2/n, n/60
Purchases 150,000 Accounts Receivable 150,000
Accounts Payable 150,000 Sales 150,000
c. Returned ₱5,000 defective merchandise c. Received ₱5,000 defective merchandise sold
bought on account, on account.

Accounts Payable 5,000 Sales Return and Allowances 5,000

Purchase Return and Allowances Accounts receivable 5,000
5,000
d. Received ₱ 300 cash refund for returned d. Paid ₱ 300 cash refund for returned
merchandise. merchandise.
Cash 300 Sales Return and Allowances 300
Purchase Return and Allowances Cash 300
300
e. Paid transportation charges ₱ 1,000 e. Paid transportation charges ₱ 1,000
(Assumption: Freight charges to be shouldered (Assumption: Freight charges to be shouldered
by the buyer) by the seller)
Freight In 1000 Freight out or Delivery Expense 1,000
Cash or Accounts Payable Cash or Accounts Payable 1,000
1000
f. Payment of Accounts Payable within the f. Collection within the discount period arising
discount period arising from the purchase of from the sale of merchandise
merchandise Cash 142,100
Accounts Payable 145,000 Sales 2,900
Purchase Discount 2,900 Accounts Receivable 145,000
Cash 142,100
Computation: Computation:
Purchase Price ₱ 150,000 Purchase Price ₱ 150,000
Less: Purchase Less: Purchase
Return and Allowances 5,000 Return and Allowances 5,000
Net Purchases ₱ 145,000 Net Purchases ₱ 145,000
Less: Purchase Less: Purchase
Discount(145,000 x 2%) 2,900 Discount(145,000 x 2%) 2,900
Cash Paid ₱ 142,100 Cash Paid ₱ 142,100
g. Purchase merchandise ₱ 14,000 on account g. Sold merchandise ₱ 14,000 on account Terms:
Terms: 3/n, n/60 3/n, n/60
Purchases 14,000 Accounts Receivable 14,000
Accounts Payable 14,000 Sales 14,000
h. Pay ment after the discount period h. Collection after the discount period
Accounts Payable 14,000 Cash 14,000
Cash 14,000 Accounts Receivable 14,000
NOTE : If you want a straight problem solving consider the following . Changing the value from 155,00 0
to 150,000

How to compute for purchases / purchase price

Look at your letter b and c transaction :

Purchases is 150,000

Purchase returns 5,000

Total Purchases = 145,000

This 145,000 is subject for a 2 % discount (2/n,n/60) . Assuming that the payment will be made within
the discount period.

The purchase discount will be 145,000 x 2 % = 2900.

Question: Where did you get the 2 %, look at the transaction letter b (2/n, n/60) .

Hehe clear?

Follow the color nalang po. Matetrace niyo na kung san nanggaling yung amounts. 

NOTE : PURCHASE ON ACCOUNT VS, RETURN OF MERCHANDISE ON ACCOUNT

PURCHASE MERCHANDISE FOR CASH VS. RETURN OF MERCHANDISE BOUGHT FOR CASH,

Huwag pong pagsasama samahin 