Destination seller Jhace

Free on board
Shipping point buyer Lian

Jhace Lian
Manila CDO
Freight

who will pay???

FOB Shipping point lian

Warehouse 2,000,000
store 1,000,000
Consignment- canteen 500,000
order from supplier 500,000 in transit shipping point
destination
4M 3.5 M
???

FOB Shipping point

book 10,000 10000
LBC 1,000 1000
11,000 11000
Destination freight collect
Shipping point freight prepaid

Destination freight collect

Book 10,000

LBC 1,000

Shipping point freight prepaid

10,000
1,000
11,000

2/10, n/30
 PERIODIC P

Aug 1 Accounts receivable 21,000 Aug 1 Accounts receivable

Sales 21,000

1 Cost of goods sold

3 Purchases 38,000 3 Merchandise invento

Accounts payable 38,000

5 Freight in 290 5 Merchandise invento

Cash 290

6 Supplies 6,360 6 Supplies

Accounts payable 6,360

8 Purchases 36,000 8 Merchandise invento

Freight in 200
Accounts payable 36,200

12 Accounts payable 6,000 12 Accounts payable

Purchase returns and allowances 6,000

15 Accounts receivable 12,000 15 Accounts receivable

Sales 12,000

15 Cost of goods sold

16 Accounts payable 2,000 16 Accounts payable

Supplies 2,000

17 Cash 10,000 17 Cash

Sales 10,000

17 Cost of goods sold

18 Sales returns and allowances 2,000 18 Sales returns and allo

 Accounts receivable 2,000

18 Merchandise invento

24 Accounts payable 32,000 24 Accounts payable

Cash 32,000

25 Cash 19,000 25 Cash

Accounts receivable 19,000

Physical count 5,000

Beginning inventory 10,000

Add: Purchases 74,000
Freight in 490
Less: Purchase returns and allowances (6,000)
Purchase discounts (640)

Net purchases 67,850

Total goods available for sale 77,850
Less: Ending inventory (5,000)
Cost of goods sold 72,850
 PERPETUAL

Accounts receivable 21,000

Sales 21,000

Cost of goods sold 10,000

Merchandise inventory 10,000

Merchandise inventory 38,000

Accounts payable 38,000

Merchandise inventory 290

Cash 290

Supplies 6,360
Accounts payable 6,360

Merchandise inventory 36,200

Accounts payable 36,200

Accounts payable 6,000

Merchandise inventory 6,000

Accounts receivable 12,000

Sales 12,000

Cost of goods sold 6,500

Merchandise inventory 6,500

Accounts payable 2,000

Supplies 2,000

10,000
Sales 10,000

Cost of goods sold 5,500

Merchandise inventory 5,500

Sales returns and allowances 2,000

 Accounts receivable 2,000

Merchandise inventory 1,000

Cost of goods sold 1,000

Accounts payable 32,000

Cash 32,000

19,000
Accounts receivable 19,000
Aug 1 Accounts receivable 21,000
Sales 21,000

Credit terms: (2/30, n/60)

18 Sales return and allowances 2,000

Accounts receivable 2,000

25 Cash 18,620
Sales discount 380
Accounts receivable 19000

3 Purchases 38,000
Accounts payable 38,000
Credit terms: (2/30, n/60)

12 Accounts payable 6,000

Purchase returns and allowances 6,000

24 Accounts payable 32000

Purchase discount 640
Cash 31360
21000
-2000
19000
2%
380

38000
(6,000)
32000
2%
640