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ABM 123 DONELANFUNDAMENTALS OF ACCOUNTANCY, BUSINESS & MANAGEMENT 2PRACTICE PROBLEM 1Journalizing Merchandising TransactionsTransactions for the Mariano Lerin Bookstore for March 2016 follows:Mar 2 Purchased merchandise on credit from Digao Publishers, terms 2/10, n/30, FOB destination, P74,...

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ABM 123 DONELAN FUNDAMENTALS OF ACCOUNTANCY, BUSINESS & MANAGEMENT 2 PRACTICE PROBLEM 1 Journalizing Merchandising Transactions Transactions for the Mariano Lerin Bookstore for March 2016 follows: Mar

2 3 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 22 25 26 27 28 31

Purchased merchandise on credit from Digao Publishers, terms 2/10, n/30, FOB destination, P74,000. Sold merchandise on credit to Detoya Books Shop, terms 1/10, n/30, FOB shipping point, P10,000. Sold merchandise for cash, P7,000. Purchased and received merchandise on credit from Made Easy Bookstore, terms 2/10, n/30, FOB shipping point, P42,000. Received freight bill from Super Express from shipment received on March 6, P570. Sold merchandise on credit to Recoletos Books, terms 1/10, n/30, FOB destination, P38,000. Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB shipping point, P26,500, including freight costs of P500. Received freight bill from Super Express for sale on March 9, P291. Paid Digao Publishers for purchase of March 2. Received payment in full for Detoya Books Shop’s purchase of March 3. Paid Made Easy Bookstore half the amount owed on the March 6 purchase. A discount is allowed on partial payment. Returned faulty merchandise worth P3,000 to Digao Publishers for credit against purchase of March 10. Purchased office supplies from Olamit Supplies for P4,780, terms n/10. Received payment from Recoletos Books for half of the purchase of March 9. A discount is allowed on partial payment. Paid Digao Publishers in full for amount owed on purchase of March 10, less return on March 15. Sold merchandise to Sir Ed Trading on credit, terms 2/10, n/30, FOB shipping point, P7,800. Returned for credit several items of office supplies purchased on March 16, P1,280. Issued a credit memo to Sir Ed Trading for returned merchandise, P1,800. Paid for purchase of March 16, less returns on March 20. Paid freight entity for freight charges for March 7 and 11. Received payment of amount owed by Sir Ed Trading for purchase of March 19, less credits of March 22. Paid Made Easy Bookstore for the balance on the March 6 purchase. Sold merchandise for cash, P9,730.

REQUIRED: Prepare the journal entries assuming the entity uses: (a) perpetual inventory system and (b) periodic inventory system.

Date Mar 2

3

5

6 7

9

10 11 12

13

14

Perpetual

Dr

Inventory Accounts Payable

74 000

Accounts Receivable Sales Cost of Goods Sold Inventory Cash Sales Cost of Goods Sold Inventory Inventory Accounts Payable

10 000

Inventory Accounts Payable Accounts Receivable Sales Cost of Goods Sold Inventory

570

Inventory Accounts Payable Freight Out/Delivery Expense Accounts Payable Accounts Payable Cash Inventory Cash Sales Discount Accounts Receivable Accounts Payable Cash Inventory

74 000

5 000

7 000 Cash

10 000 10 000

7 000 7 000

Purchase Accounts Payable

42 000

Freight In Accounts Payable

570

570

38 000 Accounts Receivable Sales 19 000 Purchase 26 500 Freight In 26 500 Accounts Payable

38 000

42 000 570

38 000 38 000

19 000

291 291 74 000 72 520 1 480 9 900 100 10 000 21 000 20 580 420

4 780

20

74 000

42 000

Office Supplies Accounts Payable

Accounts Payable Office Supplies

Cr

74 000

Sales

42 000

16

19

Dr

3 500

3 000

18

Purchase Accounts Payable

10 000 Accounts Receivable Sales 5 000

3 500

Accounts Payable Inventory

Cash Sales Discount Accounts Receivable Accounts Payable Cash Inventory Accounts Receivable Sales Cost of Goods Sold Inventory

Periodic

7 000

15

17

Cr

3 000 4 780

Freight Out/Delivery Expense Accounts Payable Accounts Payable Cash Purchase Discount Cash Sales Discount Accounts Receivable Accounts Payable Cash Purchase Discount Accounts Payable Purchase Returns and allowances Office Supplies Accounts Payable

18 810 190

Cash Sales Discount 19 000 Accounts Receivable Accounts Payable 23 500 Cash 23 040 Purchase Discount 460 7 800 7 800 Accounts Receivable Sales 3 900 3 900 1 280

Accounts Payable 1 280 Office Supplies

26 000 500 26 500 291 291 74 000 72 520 1 480 9 900 100 10 000 21 000 20 580 420 3 000 3 000 4 780 4 780 18 810 190 19 000 23 500

23 040 460

7 800 7 800 1 280 1 280

22

25 26 27 28

31

Sales Returns and Allowances Accounts Receivable Inventory Cost of Goods Sold Accounts Payable Cash Accounts Payable Cash

1 800 900 3 500

Sales Returns and 1 800 Allowances Accounts Receivable 900 Accounts Payable Cash 3 500

861

Cash Sales Discount Accounts Receivable Accounts Payable Cash

1 800 1 800 3 500 3 500

Accounts Payable Cash 861

861 861

5 880 120

Cash Sales Discount 6 000 Accounts Receivable 21 000 Accounts Payable 21 000 Cash

Cash

9 730

Sales Cost of Goods Sold Inventory

4 865

5 880 120 6 000 21 000 21 000

9 730 Cash

9 730 9 730

Sales 4 865

T – Accounts (Perpetual) Cash

Inventory

Accounts Receivable

Mar 5 ₱ 7 000 Mar 12 ₱ 72 520 13 14 20 580 9 900 17 18 810 18 23 040 27 25 5 880 3 500 31 26 9 730 861 28 21 000 51 320 141 501 (141 501) (141 501) ₱ -90 181

Mar 2 ₱ 74 000 Mar 3 ₱ 5 000 6 42 000 5 3 500 7 9 19 000 570 10 26 500 12 1 480 22 14 900 420 15 3 000 18 460 19 3 900 31 4 865 143 970 41 625 (41 625) (41 625)

Mar 3 ₱ 10 000 Mar 13 ₱ 10 000 9 38 000 17 19 000 19 22 7 800 1 800 6 000 27 55 800 36 800 (36 800) (36 800) ₱ 19 000

-

Accounts Payable

Office Supplies Mar 16 ₱ 4 780 Mar 20 (1 280)

₱ 1 280 (1 280)

₱ 3 500

-

Cost of Goods Sold Mar 3 ₱ 5 000 Mar 22 5 3 500 9 19 000 19 3 900 4 865 31

₱ 900

Mar 12 ₱ 74 000 Mar 2 ₱ 74 000 14 6 21 000 42 000 15 7 3 000 570 18 10 23 500 26 500 20 11 1 280 291 25 3 500 4 780 16 26 861 28 21 000 148 141 148 141 (148 141) (148 141) -

36 265 (900)

900 (900)

₱ 35 365

-

-

₱ 100 190 120 ₱ 410

-

Sales Mar 3 ₱ 10 000 5 7 000 9 38 000 19 7 800 31 9 730 -

₱ 72 530

Sales Returns and Allowances

Sales Discount Mar 13 17 27

₱102 345

Mar 22 ₱ 1 800 Freight Out / Delivery Expense -

Mar 11 ₱ 291...