Maymay General Merchandise

Chart of Accounts
Balance Sheet Accounts Income Statement Accounts
Assets Income
110 Cash 410 Sales
120 Accounts Receivable 420 Sales Discount
130 Allowance for Bad Debts 430 Sales Return and Allowances
140 Merchandise Inventory 440 Output Tax
150 Prepaid Rent Expenses
Liabilities 510 Purchases
210 Accounts Payable 520 Purchase Discounts
220 Salaries Payable 530 Purchase Returns and Allowances
230 VAT Payable 540 Input Tax
240 Interest Payable 550 Freigt In
250 Notes Payable 560 Rent Expense
Owner's Equity 570 Salaries Expense
310 Maymay, Capital 580 Bad Debts Expense
320 Maymay, Drawings 590 Freigt Out
330 Income Summary 600 Cost of Goods Sold
Maymay Miano start selling different kinds of merchandise located at Divisoria Mall. Here's the transaction during the month of March 2023. All credit sale
1% estimated allowance for bad debts for the total Accounts Receivable at the end of the month.
March 1: Maymay Miano invested 52,000 of her funds in the business.
March 1: Purchased merchandise from Rey Garments amounting to 10,000 FOB Shipping Point, Freight Collect. Shipping fee is 300.
March 2: Sold merchandise on account to Mercy amounting to 20,000 FOB Shipping Point, Freight Prepaid. Shipping fee is 350. Cost of Goods Sold is 10,
March 7: Purchased on account from Jan Merchadise amounting to 15,000 2/10, n/30 FOB Shipping Point, Freight Prepaid. Shipping fee is 200.
March 10: Collected payment from Mercy.
March 15: Borrowed money from Bank of Makati amounting to 50,000 payable in 2 years with 5% annual interest.
March 16: Sold merchandise to Lito amounting to 30,000 FOB Shipping Point, Freight Collect. Shipping fee is 100. Cost of goods is 15,000.
March 17: Purchased merchandise amounting to 9,000 FOB Destination, Freight Collect. Shipping cost is 100.
March 20: Paid Jan Merchandise.
March 23: Purchased on account from Kaye Store amounting to 11,000 1/10, n/20 FOB Destination, Freight Prepaid
March 24: Returned defective products to Kaye Store amounting to 1,000.
March 25: Received defective merchandise from Lito, amounting to 2,500. Cost of goods is 1,250.
March 30: Sold merchandise amounting to 28,000 FOB Destination, Freight Collect. Shipping cost is 1,200. Cost of goods is 14,000.
March 30: Paid rent for the month, 5,000.
March 30: Paid Kaye Store.
March 31: Paid salaries for the month, 15,000.
March 31: Inventory amount at the end of the month is 6,750.

Requirements:
1. Record the transactions to the appropriate journal using Periodic or Perpetual Inventory System
2. Post the transaction to General and Subsidiary Ledger
3. Prepare an Unadjusted Trial Balance
4. Make an adjusting entries for accrued interest. Assume that merchadise sold on March 30 is still in transit, determine the correct amount of inventory.
5. Prepare an Adjusted Trial Balance
6. Prepare a Closing Entries and Closing Trial Balance
7. Prepare an Income Statement
March 2023. All credit sales have terms 3/10, n/30 and with

Cost of Goods Sold is 10,000.

ping fee is 200.

ect amount of inventory.

 SALES JOURNAL
Dr Accounts
Date Account Debited Invoice No Ref Dr Transpo Out
Receivable
Mar 2 Mercy 20,000.00
 Dr Cost of Goods
Cr Output Tax Cr Sales
Sold, Cr Inventory
2,142.86 17,857.14
 PURCHASE JOURNAL
Date Account Credited Terms Ref Dr Inventory/Purchase Dr Transpo In Dr Input VAT Cr Accounts Payable
Mar 7 Jan Merchandise 2/10 13,392.86 200.00 1,607.14 15,200.00
Mar 23 Kaye Store 1/10 9,821.43 1,178.57 11,000.00
 CASH RECEIPTS JOURNALS
Date Account Credited Ref Dr Cash Dr Freight Out Dr Sales Discount Cr Sales
Mar 1 Maymay Miano 52,000.00
Mar 10 Mercy 20,350.00
Mar 15 Bank of Makati 50,000.00
Mar 16 Lito 30,000.00 26,785.71
Mar 30 26,800.00 1,200.00 25,000.00
PTS JOURNALS
Cr Accounts Dr Cost of Goods
Cr Output Tax Cr Other Accounts
Receivable Sold Cr Inventory
Maymay, Capital 52,000.00
20,350.00
Notes Payable 50,000.00
3,214.29
3,000.00
 CASH DISBURSEMENT JOURNAL
Dr Accounts
Date Check No. Account Debited Ref Dr Other Accounts Dr Input Tax
Payable
Mar 1 Rey Garments Freight In 300.00 1,071.43
Mar 2 Mercy 358.00
Mar 17
Mar 20 Jan Merchandise 15,200.00
Mar 25 Lito Sales Returns & Allowances 2,500.00
Mar 30 Rent Expense ? 5,000.00
Mar 30 Kaye 11,000.00
Mar 31 Salaries Expense 15,000.00
Dr Purchase Cr Purchase
Cr Cash
/Inventory Discounts
8,928.57 10,300.00
350.00

15,200.00
2,500.00
5,000.00
110.00 10,890.00
15,000.00
 GENERAL JOURNAL
Date Account Titles and Explanation PR Debit Credit
Mar 24 Accounts Receivable 530 1,000.00
Purchase Returns and Allowances 120 1,000.00
Returned defective products