Prepare the Journal Entries for the following purchase transactions: I. Purchase of merchandise for cash: a. Merchandise is purchased for cash, P35,000 b. Merchandise listed at P50,000, subject to a trade discount of 10%, is purchased for cash. II. Purchase of merchandise on account: a. Merchandise purchased on account, credit terms 2/10, n/30, P40,000. b. Merchandise purchased on account, credit terms 3/10, n/30, P28,000. c. Payment is made on invoice (a) within the discount period. d, Payment is made on invoice (b) beyond the discount period.
Prepare the Journal Entries for the following purchase transactions: I. Purchase of merchandise for cash: a. Merchandise is purchased for cash, P35,000 b. Merchandise listed at P50,000, subject to a trade discount of 10%, is purchased for cash. II. Purchase of merchandise on account: a. Merchandise purchased on account, credit terms 2/10, n/30, P40,000. b. Merchandise purchased on account, credit terms 3/10, n/30, P28,000. c. Payment is made on invoice (a) within the discount period. d, Payment is made on invoice (b) beyond the discount period.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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Prepare the
I. Purchase of merchandise for cash:
a. Merchandise is purchased for cash, P35,000
b. Merchandise listed at P50,000, subject to a trade discount of 10%, is purchased for cash.
II. Purchase of merchandise on account:
a. Merchandise purchased on account, credit terms 2/10, n/30, P40,000.
b. Merchandise purchased on account, credit terms 3/10, n/30, P28,000.
c. Payment is made on invoice (a) within the discount period.
d, Payment is made on invoice (b) beyond the discount period.
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