DOKKEEPING LEVEL 2-MERCHANDISING AND ADJUSTING ENTRIES EXERCISES AND PROBLEMS EX

Question

DOKKEEPING LEVEL 2-MERCHANDISING AND ADJUSTING ENTRIES EXERCISES AND PROBLEMS EXERCISES 1 Present journal entries for the following selected transactions of a merchandising firm which employs the periodic inventory system. (Assume that the chart of accounts of the firm provided for individu and Allowances.) itors and customers' names as account titles and also Purchase Returns and Allowances and Sales Returns A. Purchased merchandise for cash, P10,000 B. Purchased merchandise on account from Gems, International, P15,000. C. Paid freight for the purchase in B, P100. D. Returned merchandise to Gems, International, P5,000. E. Sold merchandise for cash, P7,000. F. Sold merchandise on account to Anthony Marketing, P14,000. G. G. Paid transportation cost of the merchandise sold in F, P30. H. Received returned merchandise from Anthony Marketing. Issued a credit memo I. Paid the account to G for P2,800, cash discount granted by Gems, ems, International; net cash paid, P9,800, International, P200 J. Collected the account of Anthony Marketing, minus a cash discount of P112 EXERCISES 2 Assume the same transactions in EXERCISES 1; except that the merchandising firm uses the perpetual inventory system. Other data: a. The cost of merchandise sold in E is P5,000. b. The cost of merchandise sold in Fis P10,000. C. The cost of merchandise returned in H is P2,020.

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries Event Particulars Debit Credit A Purchases Dr 10000.00       To Cash 10000.00 (To recod purchases for cash) B Purchases Dr 15000.00       To Gems, International 15000.00 (To recod purchases from Gems international on account) C Freight Inward Dr 100.00       To Cash 100.00 (To record freight charges) D Gems, International Dr 5000.00              To Purchase Returns and allowances 5000.00 (To record merchandise return to Gems International) E Cash Dr 7000.00           To Sales Revenue 7000.00 (To record cash sales) F Anthony Marketing Dr 14000.00          To Sales Revenue 14000.00 (To record sales on account to Anthony marketing) G Freight Outward Dr 30.00       To Cash 30.00 (To recod transportation cost of merchandise sold) H Sales Returns and Allowances Dr 2800.00       To Anthony Marketinng 2800.00 (to record returned merchandise from Anthony marketing) I Gems Imternational Dr 10000.00       To Purchase Discount 200.00       To Cash 9800.00 (To record payment to Gems International) J Cash Dr 11088.00 Sales Discount Dr 112.00       To Anthony Marketing 11200.00 (to recod cash collection from Anthony marketing)

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