Villanueva, Lhea M.

BSMA 2201

Assessments:
1. BZ Company entered into the following during the year:
Jan 4 Sold 10,000 units of merchandise to Happy Company at a selling price of
P150 with terms of 2/10, 1/20, n/30.
6 Sold 15,000 units of merchandise to Lovely Company at a selling price of
P150 with terms of 2/10, 1/20, n/30.
7 Happy returned 2,000 units of goods to the company.
23 Happy paid his account availing of the cash discount.
Feb 5 Lovely Company paid his account.
Required: Prepare all the necessary journal entries assuming the company used:
a. Gross Method
b. b. Net Method

PROBLEM 1
Solution:

GROSS METHOD NET METHOD

Date Account Title Dr Cr Account Title
Jan 4 Accounts 1,500,000 Accounts
Receivable 1,500,000 Receivable
Sales Sales
Jan 6 Accounts Accounts
Receivable Receivable
2,250,000 2,205,000
Sales Sales
2,250,000 2,205,000
Jan 7 Sales Return Sales Return
1,500,000 1,500,000
Accounts Accounts
Receivable Receivable
1,500,000 1,500,000
Jan Cash Cash
23 Sales Discount Accounts
Accounts Receivable
Receivable
Feb 5 Cash Cash
Accounts Sales Discount
Receivable Accounts
Receivable