MARTINEZ, ALTHEA E.

FEBRUARY 28, 2021

ABM 12-1 ACCOUTING 2
Activity 1

1. Differentiate the account freight in from freight out.

Freight In is the term used when shipping cost is to be paid by the purchaser in conjunction with FOB shipping while
the Freight Out is the term used when shipping cost is to be paid by the seller in conjunction with FOB Shipping.
2. Super Bookstore bought books and supplies for office use from Prep Publishing Co. for ₱5,000 and paid cash.
Super hardware bought also supplies for office use from Prep Publishing and paid ₱1,000 in cash. Both the
bookkeepers of Super Bookstore and Super Hardware debited the title Purchases. Do you agree? Who is not
correct and why?
Both the bookkeepers of Super Bookstore and Super Hardware debited the title Purchase. I do agree that the title
that they put at their record was debited is it because both of them bought supplies for their respective office and
they both paid cash for the supplies that they purchased that’s why I do agree that they must put debited at their
record.
3. Cosmos Drugstore bought equipment on account from Modern Equipment costing ₱15,000. After a day, Cosmos
returned an equipment worth ₱1,000 for being defective. The following entries were prepared for the return:
Books of Cosmos Co.

Date Particulars F Debit Credit

Accounts Payable 1,000
Purchase Return & Allowances 1,000

Books of Modern Equipment

Date Particulars F Debit Credit

Sales Return & Allowances 1,000
Accounts Receivable 1,000

Are the entries correct? Which one is not correct and why?
 They are both correct.

4. Bella Furniture Store sells tables and chairs. For the month of July, 100 tables at ₱2,000 each and 500 chairs at
₱600 each were purchased. At the end of the month, an inventory count showed that 20 tables and 100 chairs
remain on hand.
a) Compute for the purchases, merchandise inventory at the end of July and cost of goods sold for July.
Beginning Inventory:

A.)

Purchases ₱500,000
Less Merchandise Inventory, July 31
Tables (20x ₱2,000) (₱40,000)
Chairs (100x ₱600) (₱60,000)

Cost of Goods Sold

Tables (80x ₱2,000) ₱160,000
Chairs (400x ₱600) ₱240,000
₱400,000

b.) Assume a table sells for ₱3,500 and a chair sells for ₱1,500. Compute for the sales and the gross margin on
sales. B.) Sales
Tables (80x ₱3,500) ₱280,000
Chairs (400x ₱1,500) ₱ 600,000
Total Sales ₱ 880,000
Cost of sales
Table (80x ₱2,000) ₱160,000
Chair (400x ₱600) ₱240,000
₱ 400,000

Gross Margin on Sales ₱ 480,000

5. Still using number 4. Suppose the following month, another 120 tables at ₱2,500 each and 300 chairs at ₱750 each
were purchased by the company. At the end of the month only 50 tables and 250 chairs remain unsold.
Compute for:
a. cost of purchases

A.) Merchandise Inventory Tables (20x ₱2,000) ₱40,000

Add: Purchases (120x ₱2,500) ₱300,000
₱340,000
₱525,000
Merchandise Inventory Chairs (100x ₱600) ₱60,000
Add: Purchases (300x ₱750) ₱225,000
₱285,000

b. the total goods available for sale

₱625,000
c. merchandise inventory at the end of August using the latest cost prices
Tables (50x ₱2,500) ₱125,000
Chairs (250x ₱750) ₱187,500
(₱312,500)

d. the cost of goods sold

(₱312,500)
e. the sales and gross margin on sales

E.) Tables (70x ₱3,500) ₱245,000

Chairs (50x ₱1,500) ₱75,000
₱320,000

Less: Cost of sales

Tables (50x ₱2,500) ₱125,000
Chairs (250x ₱750) ₱187,500
(₱312,500)

Gross Margin on sales ₱7,5000

6. During the year, Towson Co. purchased merchandise costing ₱30,000. In each of the following cases, calculate a)
the total cost of goods available for sale and b) the cost of goods sold for the year.

Cas Beginning Ending Freigh Returns & Discount

e Inventory Inventory t Allowances s
1 ₱ 0 ₱ 0 ₱3,000 ₱ 0 ₱600
2 10,000 0 0 5,000 500
3 8,000 6,000 3,000 0 0
4 0 5,000 1,500 1,000 0
5 15,000 7,500 2,500 1,000 550

Answer
Case Total cost of goods available for sale Cost of goods sold for the year
1 32,4000 32,400
2 34,500 34,500
3 41,000 35,000
4 30,500 25,500
5 45,950 38,450
7. In each of the following cases, supply the missing items:

Cas Sa C Operating Net Profit

e Gross Profit les ost of Sales Expenses (Net Profit)
A ₱ 44,000 ₱85,000 ₱41,000 ₱28,000 ₱16,000
B 80,000 ₱150,000 ₱70,000 ₱55,000 ₱25,000
C ₱30,000 170,000 140,000 ₱24,000 (6,000)
D ₱80,000 125,000 ₱45,000 65,000 15,000
E ₱90,000 120,000 ₱30,000 75,000 (15,000)

8. The following information were taken from the books of Old Dominion Company:

Merchandise Inventory, 1/1/00 ₱25,000 Purchases ₱56,000

Transportation Out 5,500 Sales Discount 1,000
Merchandise Inventory, 12/31/00 20,000 Sales 150,000
Purchase Returns & Allowances 4,000 Commission Expense 15,000
Utilities expense 22,500 Depreciation Expense 8,250
Transportation In 4,000 Rent Expense 60,000
Purchase Discount 3,000 Salaries Expense 45,500
Sales Returns & Allowances 2,000

Compute for net sales, total cost of goods delivered, net cost of purchases, cost of goods sold, gross margin on sales,
and net income or net loss

Net Sales
Gross Sales ₱150,000
Less Sales returns & Allowances ₱2,000
Sales Discount 1,000 3,000
Net sales ₱147,000

Total Cost of Good Delivered

Merchandise Inventory, Jan. 1 ₱25,000
Add Net Cost of purchases:
Purchases ₱56,000
Add Freight In 4,000
Total cost of goods delivered ₱60,000
Less Purchase returns and Allowances ₱4,000
Purchase Discount 3,000 (7,000) ₱53,000
Total Goods Available for Sales ₱78,000
Less Merchandise Inventory, Dec. 31 (20,000)
Cost of Sales or COGS ₱58,000

Net Cost of Purchases:

Gross Margin on sales
Sales ₱150,000
Cost of sales (₱58,000)
₱92,000

Net Loss
Net Sales ₱147,000
Cost of sales (₱58,000)
Gross Profit ₱89,000
Selling Expense (₱88,500)
Administrative Expense (₱68,250)
Net Loss -₱67,750

Selling Expense
Salaries Expense ₱45,000
Commission Expense ₱15,000
Utilities Expense ₱22,500
Transportation Out ₱5,500
₱88,500
Administrative Expense
Rent Expense ₱60,000
Depreciation Expense ₱8,250
₱68,250

9. The following selected adjusted account balances were taken from the work sheet of Barok Wear Company for the
year ended December 31, 2000:

Account Title Debits Credits

C. Barok, Capital ₱220,000
C. Barok, Withdrawals ₱35,000
Sales 550,000
Sales Returns and Allowances 7,000
Sales Discount 13,000
Purchases 200,000
Transportation In 10,000
Purchases Returns and Allowances 14,000
Purchases discount 16,000
Selling Expense 230,000
General and Administrative Expenses 90,000
Other Revenues 8,000
Other Expenses 5,000

Merchandise inventory balances were as follows:

January 1, 2000 ₱40,000
December 31, 2000 50,000

Required: Prepare an income statement using the functional presentation format.

Barok Weary Company

Income Statement
For the Year ended December 31, 2000

Net Sales (Note 1) ₱530,000

Cost of Sales (Note 2) ₱170,000
Gross Profit ₱ 360,000
Other Revenues ₱8,000
Selling Expense (₱230,000)
General and Administrative Expense (₱90,000)
Net Operating Income ₱48,000
Other Expenses (₱5,000)

Net Income ₱43,000

Note 1:
Gross Sales ₱550,000
Less Sales returns & Allowances ₱7,000
Sales Discount 13,000 20,500
Net sales ₱530,000

Note 2:
Merchandise Inventory, Jan. 1 ₱40,000
Add Net Cost of purchases:
Purchases ₱200,000
Add Freight In 10,000
Total cost of goods delivered ₱210,000
Less Purchase returns and Allowances ₱14,000
Purchase Discount 16,000 30,000 ₱180,000
Total Goods Available for Sales ₱220,000
Less Merchandise Inventory, Dec. 31 50,000
Cost of Sales ₱170,000
10. Willy’s Company is a hardware store. To attract customers, the company sells on account with terms of 2/10, n/30.
Journalize the following transactions for February.

4 Sold merchandise on account to Villar Construction Company at an invoice price of

₱100,000.
7 Sold merchandise on account to Sta. Lucia East Company at an invoice price of ₱150,000.
9 Sta. Lucia Company returned ₱6,000 worth of unsatisfactory merchandise which was
credited to its account.
15 Received payment in full from Sta. Lucia Company.
22 Received payment in full from Villar Construction Company

Suppose Sta. Lucia paid only 50% on Feb. 15 and the balance on Feb. 17? Give the journal entries.

Date Accounts & Explanations F Debit Credit

Feb. 4 Account Receivable ₱100,000
Sales ₱100,000
To record sales on account of Villar
Company on terms of 2/10, n/30
7 Account Receivable ₱150,000
Sales ₱150,000
To record sales on account of Sta.
Lucia Company on terms of 2/10,
n/30
9 Sales Return and Allowances ₱6,000
Account Receivable ₱6,000
To record sales return of Sta. Lucia
Company
15 Cash ₱141,120
Sales Discount ₱2,880
Sales ₱144,000
To record the payment of Sta. Lucia
Company on terms of 2/10, n/30
22 Cash ₱100,000
Sales ₱100,000
To record the payment of Villar
Company

Suppose Sta. Lucia paid only 50% on Feb. 15 and the balance on Feb. 17? Give the journal entries.
Date Accounts & Explanations F Debit Credit
15 Account Receivable ₱72,000
Sales ₱72,000
To record 50% payment from Sta.
Lucia Company
17 Account Receivable ₱72,000
Sales Discount ₱2,880
Sales ₱69,120
To record the balance payment of
Sta. Lucia Company on terms of 2/10,
n/31

11. Green Company is a wholesaler of goods products. Journalize the following transactions for April:

5 Purchased ₱20,000 goods on account from Red Company, terms: 2/10, n/30
7 Purchased ₱10,000 goods on account from White Company, Terms: 1/10, n/30
9 Paid a ₱1,000 freight bill on the purchase made from Red.
10 Found ₱2,000 of the goods received from White to be spoiled and returned it for credit.
15 Paid Red Company for the balance of the amount due.
25 Paid in full the amount due to White Company.
Required:
a. Journalize the above transactions. Open subsidiary cards for the suppliers. Post to a T-account the accounts
payable entries, determine the balance and reconcile with the balances in the suppliers’ cards.
A.)
Date Accounts & Explanations F Debit Credit
April 5 Purchases ₱20,000
Accounts Payable ₱20,000
To record purchases on terms of
2/10, n/30
7 Purchases ₱10,000
Accounts Payable ₱10,000
To record purchases made on terms
of 1/10, n/30
9 Freight In ₱1,000
Cash on hand ₱1,000
To record the freight
10 Account Payable ₱2,000
Purchase returns & allowances ₱2,000
To record returned purchases
15 Accounts Payable ₱20,000
Purchase Discount ₱400
Cash ₱19,600
To record purchase discount & full
payment of Red Company
25 Accounts Payable ₱8,000
Cash ₱8,000
To record full payment of White
Company

b. Suppose Green paid 50% to Red on April 11 and the balance on April 15? Give the journal entries.
Date Accounts & Explanations F Debit Credit
April 11 Accounts Payable ₱10,000
Cash ₱10,000
To record 50% payment to Red
Company
15 Accounts Payable ₱9,600
Purchase Discount ₱400
Cash ₱10,000
To record the balance payment to
Red Company

12. Laura Company had the following transactions:

Mar 4 Purchased merchandise from Manalo Company at a list price of ₱50,000. Terms: 5% and
10% trade discount, 2/10/EOM, n/60, F.O.B. Shipping Point, Freight Collect.
5 Paid Daily Express ₱1,000 for delivery cost of the purchase.
6 Upon inspection, noted that merchandise invoiced at ₱2,000 in the Manalo shipment
was of the wrong model. Returned the incorrect merchandise to Manalo Company.
8 Sold merchandise to Susan Peters in the amount of ₱7,000. Terms: 2/10, n/30, F.O.B.
shipping Point, Freight Collect ₱1,000.
15 Received a check from Susan Peters in total payment of her purchase of March 8.
19 Sold merchandise to David Company amounting to ₱11,500. Terms: 2/10, n/30, F.O.B.
destination. Paid ₱800 to Daily express for delivery of merchandise to David Company.
20 David reported that an item in the shipment was defective; it was agreed that David
would retain the item but will be credited for ₱500.
28 Received a check from David Company for the amount due.
Apr 4 Paid Manalo Company the amount due on the purchase of March 4.

Required:
a. Journalized the above transactions. Open the customers’ cards.
b. Post to a T account the accounts receivable entries. Determine the balance and reconcile with the balances in
the customers’ cards.
A LAURA COMPANY
JOURNAL ENTRIES
For the month of March
Date Accounts and explanation F Debit Credit

March 4 Purchases ₱50,000

Purchase discounts ₱7,500
Accounts Payable ₱42,500

₱50,000 (list price) = 5% x10% (trade

discounts) = ₱7,500

₱50,000-₱7,500= ₱42,500 (invoice price)

Purchase has made an Terms: 5% and 10%
trade discount, 2/10/EOM, n/60
March 5 Freight In ₱1,000
Cash ₱1,000
Freight in the terms of the FOB Shipping Point,
Freight Collect
March 6 Accounts Payable ₱2,000
Purchase Return and Allowance ₱2,000
Return the incorrect merchandise in Manalo
Company
March 8 Accounts Receivable ₱7,000
Sales ₱7,000
Sales on account in terms: 2/10, n/30
Freight In ₱1,000
Cash ₱1,000
To record the
FOB shipping point
March 15 Cash in Bank ₱7,860
Sales Discount ₱140
Accounts Receivable ₱8,000

March 8 (₱7,000+₱1,000=₱8,000)
₱8,000-₱140=₱7,860
To record the full payments check from Susan
Peters
March 19 Accounts Receivable ₱11,500
Sales ₱11,500
Sales on account terms: 2/10, n/30, FOB.
Destination
Freight In ₱800
Cash ₱800
To record the check received from David
Company
March 20 Sales Return and Allowance ₱500
Accounts Receivable ₱500
To record those defective item
March 28 Cash in Bank ₱10,780
Sales Discount ₱220
Accounts Receivable ₱11,000
To record the check received from the David
Company
₱11,000 (invoice price) - ₱500(return and
allowances)x 2%= ₱220
₱11,000-₱220=₱10,780
April 4 Accounts Payable ₱42,500
Cash ₱41,690
Purchase Discount ₱810
March 4 and 6
₱50,000 (list price) = 5%x10% (trade
discount)= ₱42,500
₱42,500-₱2,000x0.2= ₱810 (purchase
discount)
₱42,000-₱810=₱41,690
To record the full payment made by Manalo
Company
B
ACCOUNTS RECEIVABLE
March 8
₱7,000 ₱8,000
March 15
March 19
13. ₱11,500 ₱500
March 20 ₱12,300
March 28
₱2,300

Terry Lopez operates a music shop called Sounds. She carries charge accounts for a few customers and offers cash
discounts of 2/10, n/30 to encourage prompt payment. The following are the transaction for January aside from
the owner’s investments of ₱500,000 cash, ₱200,000 furniture, ₱200,000 equipment and ₱40,000 inventory.
4 Purchased compact discs from Octo Supply at a list price of ₱5,000. Terms were 1/10, n/30,
F.O.B Destination, Freight Prepaid. Trade discounts of 10% and 20% were received. The
merchandise was received on January 6.
7 Purchased cassette tapes from This Is Entertainment at an invoice price of ₱3,000, Terms
2/10, n/30, F.O.B Shipping Point. Freight Prepaid ₱500.
9 Paid ₱1,500 for advertising that had appeared in the local paper.
10 Compact discs, with a list price of ₱600, from Octo Supply were found defective and
returned for credit.
Paid freight of ₱150 for the return and charged Octo Supply.
15 Cash sales for the first half of the month totaled ₱15,000.
16 Sales on account to V-Day totaled ₱20,000.
17 Paid the amount owed to This Is Entertainment.
18 A cash customer who had purchased compact discs for ₱200 returned them for being
defective and got a cash refund.
20 Paid ABC Deliveries ₱500 for delivery of merchandise to customers during the month.
24 V-day paid ₱10,000 less the corresponding discount.
27 Received the utility bill for the month on the store, ₱3,000.
28 Paid ₱4,000 in wages to sales clerks and ₱2,000 to a part-time office clerk for the month.
30 Cash sales for the second half of the month totaled ₱13,000.
31 A physical count of inventory showed ₱23,000 still unsold.
Required:
1. Journalize the transactions in general journal form.
TERY LOPEZ MUSIC SHOP
JOURNAL ENTRIES
For the month of January
Date Accounts and Explanation Accounts Debit Credit
N0.
January 2 Furniture and Pictures 105 ₱200,000
Cash 101 ₱200,000
January 3 Equipment 104 ₱200,00
Cash 101 ₱200,000
January 4 Purchases 501 ₱5,000
Accounts Payable 201 ₱5,000
Purchase Discount ₱150,000
₱5,000 ( list price) = 10%x20%=₱1,500
₱5,000 - ₱1,500 = ₱3,500 (invoice price)
Purchase made on terms 10% and 20% trade discount, 1/10,
n/30
January 7 Purchases 502 ₱3,000
Accounts Payable 201 ₱3,000
To record purchases in terms: 2/10, n/30
Transportation In 502 ₱500
Cash 101 ₱500
To record the FOB shipping point
January 9 Advertising Expense 601
Cash 101
To record the advertising expense
January 10 Accounts Payable 201 ₱600
Purchase Return and Allowances 503 ₱600
To record purchases return for being defective
Transportation in 502 ₱150
Cash 101 ₱150
To record the FOB shipping point
January 15 Sales 401 ₱15,000
Cash 101 ₱15,000
To record the cash sales for the first month
January 16 Sales 401 ₱20,000
Accounts Receivable 102 ₱20,000
To record the sales on accounts to V-Day
January 17 Accounts Payable 201 ₱350
Purchase Discount 504 ₱60
Cash 101 ₱1,440
To record the amount owed to This is Entertainment
January 18 Sales Return and Allowances 402 ₱200
Cash 101 ₱200
To record the cash return
January 20 Delivery Expense 602 ₱500
Cash 101 ₱500
To record the delivery expense
January 24 Accounts Receivable 102 ₱10,000
Sales Discount 403 ₱200
Cash 101 ₱4,800
To record the payment of V-day
January 27 Utilities Expense 605 ₱3,000
Account Payable 201 ₱3,000
To record the utilities expense
January 28 Sales Return and Allowances 604 ₱4,000
Cash 101 ₱4,000
To record the wages to sale clerks
Office Wages Expense 603 ₱2,000
Cash 101 ₱2,000
To record the wages of the part time office clerks
January 30 Sales 604 ₱13,000
Cash 101 ₱13,000
To record the cash sales for the second month
January 31 Merchandise Inventory 103 ₱23,000
Sales 401 ₱23,000
To record the physical count of the inventory

2. Open the following accounts and post the journal entries.

101 Cash 501 Purchases
102 Accounts Receivable 502 Transportation In
103 Merchandise Inventory 503 Purchase Returns and Allowances
104 Equipment 504 Purchase Discount
105 Furniture & Fixtures 601 Advertising Expense
201 Accounts Payable 602 Delivery Expense
401 Sales 603 Office Wages Expense
402 Sales returns and Allowances 604 Sales Wages Expense
403 Sales Discount 605 Utilities Expense

3. Open the creditors’ subsidiary ledgers and post the entries. Prove the balances against the control account.

Octo Supply AP1

Date Ref. Debit Credit Balance
01/04 ₱3,600 ₱3,600
01/10 ₱750 ₱2,850
This is Entertainment
Date Ref. Debit Credit Balance
01/07 ₱3,500 ₱3,500
01/17 ₱3,500 0

  Accounts Payable  
4-Jan   ₱3,600
10-Jan ₱750
7-Jan   ₱3,500
17-Jan ₱3,500
    ₱2,850  
 
 

4. Prepare a functional presentation form of income statement. 50% of utilities is selling expense.
INCOME STATEMENT
For the year ended December 31, 2000

Net Sales (Note 1) ₱47,600

Cost of Sales (Note 2) ₱23,440
Gross Profit ₱24,160
Other Revenues 0
Selling Expenses(Note 3) ₱ (7,500)
Administrative expenses(Note ₱ (3,500)
4)
Net Operating Income ₱13,160
Other expenses (0)
NET INCOME ₱13,160

Note 1

Sales ₱48,000

Less: Sales Discount ₱200

Sales Return and Allowances ₱ 200

Net Sales ₱47,600

Note 2

Inventory Beginning ₱40,000

Add: Net cost of sales ₱6,440

Less: Inventory End ₱23,000

Cost of sales ₱23,440

Note 3

Sales Wages Expense ₱4,000

Add: Delivery Expense ₱500

Advertising Expense ₱1,500

50% of Utilities Expense ₱1,500

Selling Expenses ₱7,500

Note 4
50% of Utilities Expense ₱1,500
Add: Office Wages Expense ₱2,000
Administrative Expenses ₱3,500

5. Compute for the cash balance and reconcile it against the cash flow from operating activities.

  Cash  
1-Jan ₱500,000 ₱537,800
₱1,50 14. Analyse and make journal entries for the following transactions of
9-Jan   0
10-Jan   ₱150 Bell’s Supermarket owned and operated by Abello Lopez. Post
15-Jan ₱15,000 simultaneously to the creditors’ subsidiary ledgers. Prepare a schedule
₱3,44
17-Jan   0 of Accounts Payable. Post to a T Account the accounts payable entries.
18-Jan   ₱200 Reconcile the schedule with the ledger balance.
20-Jan   ₱500
April 1 Counters for display were constructed for cash of ₱80,000. Voucher No. 72.
24-Jan ₱9,800
3 Bought a freezer from Kooler Company for ₱19,750.
₱3,00
Terms: 2/10, n/60. Purchase invoice (PI) 95990.
27-Jan   0
5 Paid for freight and installation of freezer in cash. ₱3,250. Voucher No. 73.
₱6,00
28-Jan   8 Purchased
0 goods for ₱12,000 from delicious Ice cream. Terms: 1/10, n/60, FOB Shipping
Point. Freight Collect. Purchase Invoice No. 05108.
30-Jan ₱13,000  
9 Issued a check to Express Way for the freight bill on merchandise bought from Delicious
Ice Cream, ₱200 Voucher No. 74.
11 Received a credit memo from Delicious ice Cream for goods returned, ₱500. CM No. 128.
12 Made a partial payment to Kooler Company by issuing a check for ₱5,000. Voucher No.
75.
13 Cash purchases for fruits from Dizon Farms, ₱16,500. PI 21018 Voucher No. 76.
16 Purchased merchandise from Purefoods for ₱28,000, 2/10, n/30. Purchase Invoice No.
71199.
18 Issued a check to Kooler Company for the balance due. Voucher No. 77.
20 Received a cash refund from Dizon Farm for spoiled fruits, ₱500. Official Receipt No. 513.
25 Issued a check to Purefoods in full of account. Voucher No. 78.
BELL’S SUPERMARKET
JOURNAL ENTRIES
For the month of April

Date Accounts and Explanation F Debit Credit

April 1 Counters Expense ₱80,000
Cash ₱80,000
To record the expense for the voucher that were
constructed
April 3 Purchases ₱19,750
Accounts Payable ₱19,750
To record purchases from Kooler Company on terms:
2/10, n/60
April 5 Transportation In ₱3,250
Cash ₱3,250
To record the fright and installation of the freezer
April 8 Purchases ₱12,000
Accounts Payable ₱12,000
To record the purchases from the Delicious Ice Cream
on terms: 1/10, n/60, FOB Shipping Point. Freight
Collect
April 9 Cash in Bank ₱200
Transportation In ₱200
To record the check issued for the freight bill
April 11 Accounts Payable ₱500
Purchase Return and Allowances ₱500
Credit memo from the Delicious Ice Cream for the
goods return
April 12 Accounts Payable ₱5,000
Cash in Bank ₱5,000
To record the partial payment to the Kooler Company
April 13 Purchases ₱16,500
Cash ₱16,500
To record the cash purchases for the fruits from Dizon
Farms
April 16 Purchases ₱28,000
Accounts Payable ₱28,000
To record the purchased merchandise from the Pure
foods on terms: 2/10, n/30
April 18 Accounts Payable ₱14,750
Cash in Bank ₱14,750
To record the issued check to Kooler Company for the
balance due
April 20 Accounts Payable ₱500
Purchase Return and Allowances ₱500
Credit memo from the Dizon Farm for spoiled fruits
April 25 Accounts Payable ₱27,440
Cash in Bank ₱27,440
Purchase Discounts ₱440
To record the check issued to Pure foods in full of
account
ACCOUNTS RECEIVABLE

April 3 ₱19,750

April 8 ₱12,000

April 11

₱500

April 12

₱5,000 ₱28,000

April 16

April 18

₱14,750

April 20

₱500 BAL. ₱29,000