Semi-Final Exam- Merchandising PDF

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Name Medrano, Kirsten Hayes E. ______ Course & Year; BSA 1A 1st Year _________ Test l: Show your computation in good form. 1.)

Sales………………………………….. Freight in……………………………… Sales return and allowances………….. Sales discount………………………… Purchases……………………………... Purchase Discount…………………… Merchandise Inventory Beginning……. Purchase Returns…………………….. Merchandise Inventory End………….. Operating Expenses……………………

2,000,000.00 40,000.00 60,000.00 50,000.00 1,120,000.00 20,000.00 300,000.00 40,000.00 200,000.00 400,000.00

Questions: 1.) How much is net sales? 1,990,000.00 ___________ 2.) How much is Cost of Goods Available for sale? 1,400,000.00 _____________ 3.) How much is cost of sales? 1,200,000.00_________ 4.) How much is gross profit? 790,000.000____________ 5.) How much is Net Income? ________________ 2.) Sales……………………………………………. 200,000.00 Less: Sales return and allowances… 40,000 Sales Discount 20,000 60,000.00 ' Net Sales 140,000.00 ========= 3.) Purchases……………………………………. Purchase discount…………………………… Purchase returns & Allowances…………….. Merchandise Inventory, Beginning…………… Merchandise Inventory End………………….. Freight-In……………………………………… Cost of sales………………………………….. Cost of Goods available for sale……………… Net Purchases…………………………………

360,000.00 10,000.00 4,000.00 ? 302,000.00 16,000.00 300,000.00 ? ?

4.) Net Sales………………………………………. Less; Cost of Sales…………………………….. Gross Profit…………………………………… Less; Operating Expenses…………………….. Net Income……………………………………

1,100,000.00 600,000.00 500,000.00 300,000.00 200,000.00 ========

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Test ll: Determined whether the ownership of merchandise in transit belongs to the buyer or seller. The cut-off date is December 31, 2007.

Terms of Delivery 1. F.O.B Shipping point 2. F.O.B Destination 3. F.O.B Destination 4. F.O.B Shipping point 5. F.O.B Destination 6. F.O.B Shipping point 7. F.O.B Destination 8. F.O.B Destination 9. F.O.B Shipping point 10. F.O.B Shipping point 11. F.O.B Shipping point 12. F.O.B Destination 13. F.O.B Shipping point 14. F.O.B Shipping point 15. F.O.B Destination

Date Shipped Dec. 28 Dec. 27 Dec. 20 Dec. 31 Dec. 20 Dec. 10 Dec. 29 Dec. 25 Dec. 25 Dec. 25 Dec. 28 Dec. 10 Dec. 28 Jan.5 Jan. 5

Invoice date Date received Dec. 31 Jan. 5 Jan. 1 Dec. 30 Dec. 31 Jan. 5 Jan.5 Jan. 2 Dec. 31 Dec. 22 Dec. 25 Dec. 30 Jan. 1 Dec. 31 Dec. 31

Jan. 1 Jan. 1 Dec. 30 Jan. 5 Jan. 5 Dec. 20 Dec. 29 Jan. 2 Jan. 2 Dec. 25 Dec.28 Jan. 1 Dec. 30 Jan. 5 Jan. 5

Ownership of Goods ' ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________

Test lll; On Sept. 16, 2007, Caris Co. sold merchandise to Oana Co. for P600,000, terms 2/10,n/30. Shipping costs were P60,000. Oana Co. received the goods and Caris Co.'s invoice on Sept. 17. Both Caris Co. and Oana Co. use the periodic inventory system. The following are several arrangements regarding the shipping costs. A. Shipping terms are F.O.B shipping point, freight collect. Oana Co. paid the shipping costs on Sept. 17 and remitted cash on Sept. 24. Requirements; 1. Prepare the entries for Caris Co. to record the sale and cash receipts. 2. Prepare the entries for Oana to record the purchase, the payment of shipping costs and cash remittance. B. Shipping terms are F.O.B destination, freight Collect. Oana Co. paid the shipping costs on Sept. 17 and deducted the P60,000 from the amount owed to Caris Co. A copy of freight bill to Caris Co. was provided with the Sept 24 cash remittance. Oana Co. remitted the cash on Sept. 24. Requirements; 1. Prepare the entries for Caris Co. to record the sale and cash receipts. 2. Prepare the entries for Oana to record the purchase, the payment of shipping costs and cash remittance.

C. Shipping terms are F.O.B shipping point, freight prepaid. Caris Co. paid the shipping costs on Sept. 17 . Oana Co. remitted cash on Sept. 24. Requirements; 1. Prepare the entries for Caris Co. to record the sale and cash receipts. 2. Prepare the entries for Oana to record the purchase, the payment of shipping costs and cash remittance. D. Shipping terms are F.O.B destination, freight prepaid. Caris Co. paid the shipping costs on Sept. 17 and . Oana Co. remitted the cash on Sept. 24. Requirements; 1. Prepare the entries for Caris Co. to record the sale and cash receipts. 2. Prepare the entries for Oana to record the purchase, the payment of shipping costs and cash remittance.

Test VI: In testing the sale cut off for the Camela Co. in connection with an audit for the year ended October 31, 2005, you find the following information. A physical inventory was taken as of the close of business on October 31, 2007, all customers are within a three-day delivery area of the Camela Co. plant. Vat is billed separately. The unadjusted balance for sales, purchases, and inventories are P3,500,000, P1,000,000 and P200,000 respectively. Invoice No.

F.O.B

Date Shipped

Date Recorded

0001 0002 0003 0004 0005

Destination Shipping point Shipping point Destination Destination

10-20 10-31 10-25 10-31 10-31

10-31 11.02 10-31 10-29 11-2

Date Shipped

Date Recorded

Invoice No.

Terms

Terms F.O.B

Sales

10,000 25,000 18,000 42,000 92,000

Cost

7,500 20,000 12,000 31,000 80,000 Cost

1001 Shipping point 11-02 10-23 51,000 1002 Shipping point 11-05 11.06 25,000 1003 Destination 10-25 11-03 20,000 1004 Destination 10-31 10-29 40,000 1005 Destination 11-05 11-2 25,000 Required: Compute for the adjusted balances for sales, purchases and inventories, respectively: Sales _________________ Purchases;________________ Inventories _________________...