DATE

2019
July 1

10
11

15

16

17

18

20

22
 GENERAL JOURNAL

PARTICULARS

Purchases
Cash
Purchase Merchandise

Purchases
Cash
Accounts Payable
Purchased various merchandise on terms 2/10, 1/15, n/30

Freight - In
Cash
Paid for transportation cost, FOB Shipping point

Cash
Purchase Returns and Allowances
Issued a Debit Memo for detective merchandise returned

Accounts Receivable - Margie Store

Cash
Sales
Sold Merchandise on terms 2/10, n/30

Freight - Out
Cash
Paid for transportation cost, FOB Destination point

Accounts Payable - Catriona Shops

Purchase Returns and Allowances
Issued a Debit Memo for defective merchandise returned

Sales Returns and Allowances

Accounts Receivable - Margie Store
Issued a Credit Memo for wrong specification of merchandise

Cash
Accounts Receivable - Margie Store
Received partial payment

Purchases
Cash
Accounts Payable
Purchased various merchandise on terms 2/5, n/20

Accounts Payable - Catriona Shops

Cash
Partial payment of account

Equipment
Cash
Notes Payable
Purchased computers, issued non interest bearing note

Cash
Sales Discounts
Accounts Receivable - Margie Store
Collected the account in full

Accounts Payable - Gazini Shops

Store Supplies
Returned suplies

Accounts Payable - Catriona Shops

Cash
Purchase Discount
Full Payment of account

Accounts Payable - Gazini Shops

Cash
Full Payment of account
 PAGE 1

PR DEBIT CREDIT

50,000
50,000

72,200
18,050
54,150

500
500

1,500
1,500

40,612.50
40,612.50
81,225

600
600

5,000
5,000

6,000
6,000

15,000
15,000
 40,000
8,000
32,000

12,000
12,000

40,000
20,000
20,000

18,920.25
692.25
19,612.50

5,000
5,000

37,150
36,658.50
491.50

27,000
27,000
 Jul-05

SOUTHERN TRADING purchased merchandise from CATRIONA SHOPS

with list price of P 80,000 , less 5-5 on terms 25% down payment,

balance 2/10, 1/15, n/30

List Price P 80,000

Less: Trade Discounts
List Price P 80,000
x Trade Discounts 0.05 4000
Balance 76,000
76,000
x Trade Discounts 0.05 3800
Invoice Price P 72,200
Less: Cash downpayment
72,200
25% 18050
Balance (Accounts Payable) 54,150

Jul-07

Sold 500 units merchandise to MARGIE STORE with list price of P 90,000

each less 5-5 , received 50% cash down payment while the remaining

balance is on terms 2/10, n/30

List Price P 90,000
Less: Trade Discounts
List Price P 90,000
x Trade Discounts 0.05 4500
Balance 85,500
85,500
x Trade Discounts 0.05 4275
Invoice Price P 81,225
Add: Cash downpayment
81,225
50% 40,612.50
Balance (Accounts Receivable) P 40,612.50

Jul-11

Purchased various store supplies from GAZINI SHOPS

amounting to P40,000, on terms, 20% down payment

balance on terms 2/5, n/20

List Price 40,000
Less: Cash downpayment
40,000
20% 8000
Balance (Accounts Payable) 32,000

Jul-16

Purchased from SHAMCEY MARKETING 2 units of computers amounting to

P40, 000, paying 50% down payment, while balance is through an issuance

of 30 days non-interest bearing note.

List Price 40,000
units 2 80,000
Less: Cash downpayment
80,000
50% 40000
Balance (Accounts Payable) 40,000

Jul-17

Collected the account of MARGIE STORE in full.

July 7 - Date of Sales/ July 17 - Date of Collection
Answer is Yes
Part 1:
Question: How much is the total discounts being availed?
Invoice Price (Accounts Receivable) P 40,612.50
Less: Sales Returns 6,000 P 34,612.50
x Cash Discounts Rate 0.02
Cash Discounts 692.25
Less: Partial Payment 15,000
Accounts Receivable After Returns (ARAR) 19,612.50

Part 2
Question: With the cash discounts computed, how much now is the net amount collected.
Accounts Receivable After Returns (ARAR) P 19,612.50
Less: Cash Discounts 692.25
Net Amount Collected P 18,920.25

Jul-20

Paid the account with CATRIONA SHOPS in full.

Question: Is the payment being made within the Discount Period?
July 5 - Date of Purchase/ July 20 - Date of Payment
Answer is Yes
Part 1:
Question: How much is the total discounts being availed?
Invoice Price P 54,150
Less: Purchase Returns 5,000
Accounts Payable After Returns (APAR) 49,150
x Cash Discount Rate 0.01
Cash Discounts 491.50
Less: Partial Payment 12,000
Oustanding Balance 37,150

Part 2:
Question: With the cash discounts computed, how much now is the net amount paid.
Accounts Payable After Returns (APAR) P 37,150
Less: Cash Discounts 491.50
Net Amount Paid P 36,658.50

Jul-22

Paid accounts with GAZINI SHOPS in full.

Question: Is the payment being made within the Discount Period?
July 11 - Date of Purchase/ July 22 - Date of Payment
Answer is No
The Cash Discount is 2% if paid within 5 days
Invoice Price P 32,000
Less: Purchase Returns 5,000
Accounts Payable After Returns (APAR) P 27,000
Net Amount Paid P 27,000