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    Mary Charmaine Realino
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    The document provides journal entries for three flower sales transactions using periodic and perpetual inventory methods. On October 12, 25 bushels were sold for cash with a cost of $700 generating a Sales and Cash entry and a Cost of Goods Sold and Inventory reduction entry. On October 21, 40 bushels were sold on credit for $1,200 generating a Receivables and Sales entry and an Inventory and Cost of Goods Sold entry. On October 31, payment was received on the October 21 sale generating a Receivables reduction and Cash and Discount entries.

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    The document provides journal entries for three flower sales transactions using periodic and perpetual inventory methods. On October 12, 25 bushels were sold for cash with a cost of $700 generating a Sales and Cash entry and a Cost of Goods Sold and Inventory reduction entry. On October 21, 40 bushels were sold on credit for $1,200 generating a Receivables and Sales entry and an Inventory and Cost of Goods Sold entry. On October 31, payment was received on the October 21 sale generating a Receivables reduction and Cash and Discount entries.

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    8 views1 page

    Question 1

    Uploaded by

    Mary Charmaine Realino
    The document provides journal entries for three flower sales transactions using periodic and perpetual inventory methods. On October 12, 25 bushels were sold for cash with a cost of $700 generating a Sales and Cash entry and a Cost of Goods Sold and Inventory reduction entry. On October 21, 40 bushels were sold on credit for $1,200 generating a Receivables and Sales entry and an Inventory and Cost of Goods Sold entry. On October 31, payment was received on the October 21 sale generating a Receivables reduction and Cash and Discount entries.

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    © All Rights Reserved
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    Question 1

    Prepare the journal entries for the following sales transactions of Flower Company using
    periodic and perpetual method.

    Oct. 12

    Sold 25 bushels of flowers to a customer for P1,000 cash; cost of sale P700.

    Cash 1,000

    Sales 1,000

    Cost of Goods Sold 700

    Merchandise Inventory - Flowers 700

    Oct. 21

    Sold 40 bushels of flowers for P30 per bushel on credit. Terms of the sale are 4/10, n/30, invoice
    dated October 21. Cost per bushel is P20 to Flower Company.

    Accounts Receivables 1,200

    Sales 1,200

    Cost of Goods Sold 800

    Merchandise Inventory – Flowers 800

    Oct. 31

    Received payment in full from the October 21 sale.

    Cash 1,152

    Sales Discount 48

    Accounts Receivables 1,200

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