Constantino, Summer N.

BSA-BFA

Junny sold merchandise to JayB, 1,000,000 on account. 2/10, n/30.

Freight amounted to P 20,000.
Record the following under the following scenarios
1.1 sale / Purchase
1.2 Collection/ Payment

Seller's Books Buyer's Books

Freight prepaid, FOB Destination

Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Freight Out 20,000.00 01-02 Accounts Payable 1,000,000.00

Cash 20,000.00 Purchase Discount 20,000.00
Cash 980,000.00
01-02 Cash 1,000,000.00
Sales Discount 20,000.00
Accounts Receivable 980,000.00

Freight collect, FOB Destination

Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Accounts Receivable 20,000.00 01-02 Accounts Payable 1,020,000.00

Freight out 20,000.00 Purchase Discount 20,000.00
Cash 1,000,000.00
01-02 Cash 1,020,000.00
Sales Discount 20,000.00
Accounts Receivable 1,000,000.00

Freight prepaid, FOB Shipping point

Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Accounts Receivable 20,000.00 01-01 Freight In 20,000.00

Cash 20,000.00 Accounts Payable 20,000.00

01-02 Cash 1,020,000.00 01-02 Accounts Payable 1,020,000.00

Sales Discount 20,000.00 Cash 1,000,000.00
Accounts Receivable 1,000,000.00 Purchase Discount 20,000.00

Freight Collect, FOB Shipping point

Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchase 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-02 Cash 980,000.00 01-01 Freight In 20,000.00

Sales Discount 20,000.00 Cash 20,000.00
Accounts Receivable 1,000,000.00
01-02 Accounts Payable 980,000.00
Purchase Discount 20,000.00
Cash 1,000,000.00