EXAMPLE - PRC COMPANY (Merchandising Companies)

The following are selected transactions of PRC Company for the month of August. All purchases
and sales transactions are subject to 12% VAT.
August 2 Purchased merchandise on account, list price P50,000. Terms, 10%, FOB
Destination, 2/10, n/30. Freight of P500 was paid by the shipper.
4 Sold merchandise for cash, P14,250. The mark-up on cost was 50%.
6 Returned P5,000 worth of merchandise purchased on August 2.
8 Sold merchandise on account, P4,500. Terms, 1/10, n/30, FOB SP. The seller
paid P150 for freight. The mark-up on cost was 50%.
10 Paid in full the account for purchase of August 2.
12 Sold merchandise on account, P17,700. Terms, n/30. Mark-up on cost was 50%.
14 Customer of sales transaction on August 12 returned P2,250 worth of
merchandise and a credit memo was issued.
16 Purchased merchandise on account, P21,000. Terms, FOB SP, 2/10, n/30 with
prepaid freight costs of P600.
18 Received full payment from the customer of August 8 transaction.
20 Sold merchandise on account, P8,400. Terms, 1/10, n/30. FOB Destination.
Freight of P200 was paid by the seller. Mark-up is 50% of cost.
22 Received full payment from the customer of August 12 transaction.
26 Paid in full the account for purchase of August 16.
30 Counted the remaining stocks unsold at the end of the month.

REQUIRED:
Journalize the transactions under (1) Perpetual inventory system and (2) Periodic inventory
system.