Merchandising Operations | 7-

47

NAME:
SECTION:

Problem #1

Trade and Cash

Discount Calculations
SCORE:

PROFESSOR:

On June 1, 2019, Eleno Buray Jr. Forest Products sold merchandise with a
P120,000 list price.

Trade Discount
Credit Terms
Date Paid

a.
‫نه من قة‬
30%
2/10, n/30
June 8
b.
40%
1/10, n/30
June 15
C.

2/10, n/30
June 11
d.
20%
1/15, n/30
June 14

40%
n/30
June 28

Require
d:

For each of the sales terms, determine the following:

1. the amount recorded as a sale.

2. the amount of cash received.
Problem #2

On May 15, 2019, the Guzon Book Distributors acquired for resale books on account with a
list price of P108,000. Butuan Publishing, the supplier, allowed a 15% trade discount as
well as credit terms of 2/10, n/30. Guzon paid the invoice in full on May 20, 2019.

Require
d:

Prepare the journal entries for Guzon Book

Distributors.
7-50 | Basic Financial Accounting and Reporting by
Prof. WIN Ballada

NAME:
SCORE:
PROFESSOR:
SECTION:

Problem #5

Renz Aguhob Fireworks engaged in the following purchase

transactions during the month. The entity observes the
policy that all returns are made one day after the
goods are received, and that all purchases are paid within the discount period.
List Price
FOB Terms Freight
Charges
Purchase
Returns and
Allowances
Credit Terms
Trade
Discount

P 224,000 Shipping Pt.

P 4,000
P 21,000
2/10, n/30
30%

126,000
90,000
Destination
Shipping Pt.
9,000
1/10, n/30
20%
 2,000
7,00
0
2/10, n/30
41,000
Shipping Pt.
1,000
9,000
n/30
25%

357,000
Destination
14,000
24,000
3/10, n/30
20%

Required:

Using the table above, calculate the amount needed to settle each
purchase.
7-56 | Basic Financial Accounting and Reporting by
Prof. WIN Ballada

NAME:

SECTION:

Problem #13

Journalizing Merchandising
Transactions
SCORE:

PROFESSOR:

Lenore Loqueque Homewares engaged in the following transactions

in October:

Oct. 7

Sold merchandise on credit to Lacson Co.,

terms n/30, FOB shipping
point, P30,00.

Purchased merchandise on credit from Orcajada Co.,

 terms n/30,
FOB shipping point,
P60,000.
9 Paid Mendoza Co. for shipping charges on merchandise purchased
on Oct. 8, P2,540.
10

13

14

14

17

18
Purchased merchandise on credit from Ortiz Co., terms n/30,
FOB
shipping, P90,000. Freight prepaid by Ortiz,
P6,000.
Purchased office supplies on credit from Isagan Co., terms
n/10,
P24,000.
Sold merchandise on credit to Pabelico Co., terms n/30, FOB
shipping, P24,000.
Returned damaged merchandise received from Orcajada Co.
on Oct.
8 for credit, P6,000.
Received check payment from Lacson Co. for his purchase on Oct. 7, Returned a portion of the
office supplies received on Oct. 13 for
credit, P4,000.
19 Sold merchandise for cash, P18,000.

22220
21

24
Paid Ortiz Co. for purchase of Oct. 10.
Paid Orcajada Co. the balance from the transaction on Oct. 8 and 14. Accepted from Pabelico Co. a return of
merchandise, P2,000,

Required: Prepare the journal entries.