problem: the transactions for the month of june. use markup on sales of 20% for profit. june 1 purchased merchandise from ariva marketing, list price, p 35,000, trade discount 20% terms: 2/10, n/30, fob shipping point, freight prepaid, 1200. june 3 purchased merchandise from montage trading p17,500, terms 2/10, n/30, fob destination. june 5 sold merchandise on credit to alice enterprise, p6,250, terms: 2/10, n/30, fob shipping point, freight prepaid, p450. mark up on sales 20%. june 7 returned defective merchandise to montage trading p1,500. june 9 sold merchandise to town sales company, p9,750, terms: 1/10, n/30, fob destination. june 9 paid freight costs on shipment to town sales company, p550. june 11 paid ariva marketing, the invoice of june 1 less discount. june 11 received defective merchandise returned by town sales co., p800. june 11 paid montage trading the invoice of june 3 in full. june 11 sold merchandise to oscar toledo, p6,550, terms: 2/10, n/30, fob destination, freight prepaid, p480. june 11 received a check from alice enterprise in full payment of account. june 17 bought merchandise from super mart company, p27,500, terms: n/30, fob shipping point. june 17 paid transportation charges on merchandise purchased from super mart company, p1,050. june 18 sold merchandise to solomon company, p8,750, terms: 1/10, n/30, fob shipping point, freight prepaid, p650. june 18 received check from town sales company in full payment of account. june 19 purchased merchandise from manila trading p11,400, terms : 2/10, n/30, fob destination. june 19 received a check of p2,000 from oscar toledo as partial payment of account. june 20 receive allowance for price adjustment for defective merchandise from manila trading, p1,400. june 25 paid p10,000 to super mart company as partial payment of account. june 25 sold merchandise to solo marketing, p3,250, terms: 2/10 n/30, fob shipping point. june 26 granted price adjustment allowance for defective merchandise sold to solo marketing, p350. june 26 paid super mart company the invoice of june 17 in full. june 30 received check from solomon company in full payment of account. june 30 paid manila trading the invoice of june 20 in full.
Required
Perpetual and periodic journal entry
Is all of that the question? 0.0
Perpetual Journal Entries:
June 1:
Inventory 35,000
Accounts Payable 35,000
(To record the purchase of merchandise from Ariva Marketing)
Cost of Goods Sold 21,000
Merchandise Inventory 21,000
(To record the cost of goods sold using a markup of 20%)
June 3:
Inventory 17,500
Accounts Payable 17,500
(To record the purchase of merchandise from Montage Trading)
June 5:
Accounts Receivable 6,250
Sales 6,250
(To record the sale of merchandise to Alice Enterprise)
Cost of Goods Sold 5,000
Merchandise Inventory 5,000
(To record the cost of goods sold using a markup of 20%)
June 7:
Accounts Payable 1,500
Inventory 1,500
(To record the return of defective merchandise to Montage Trading)
June 9:
Accounts Receivable 9,750
Sales 9,750
(To record the sale of merchandise to Town Sales Company)
Cost of Goods Sold 7,800
Merchandise Inventory 7,800
(To record the cost of goods sold using a markup of 20%)
Freight Out 550
Cash 550
(To record payment of freight costs on shipment to Town Sales Company)
June 11:
Accounts Payable 33,600
Cash 32,928
Purchase Discounts 672
(To record payment to Ariva Marketing, less discount)
Accounts Receivable 800
Sales Returns & Allowances 800
(To record the return of defective merchandise from Town Sales Co.)
Accounts Payable 16,800
Cash 16,800
(To record payment to Montage Trading in full)
June 11:
Accounts Receivable 6,550
Sales 6,550
(To record the sale of merchandise to Oscar Toledo)
Cost of Goods Sold 5,240
Merchandise Inventory 5,240
(To record the cost of goods sold using a markup of 20%)
Freight Out 480
Cash 480
(To record payment of freight costs on shipment to Oscar Toledo)
Accounts Receivable 6,250
Cash 6,250
(To record full payment received from Alice Enterprise)
June 17:
Inventory 27,500
Accounts Payable 27,500
(To record the purchase of merchandise from Super Mart Company)
June 18:
Accounts Receivable 8,750
Sales 8,750
(To record the sale of merchandise to Solomon Company)
Cost of Goods Sold 7,000
Merchandise Inventory 7,000
(To record the cost of goods sold using a markup of 20%)
Freight Out 650
Cash 650
(To record payment of freight costs on shipment to Solomon Company)
Accounts Receivable 9,750
Cash 9,750
(To record full payment received from Town Sales Company)
June 19:
Inventory 11,400
Accounts Payable 11,400
(To record the purchase of merchandise from Manila Trading)
Accounts Receivable 2,000
Cash 2,000
(To record partial payment received from Oscar Toledo)
June 20:
Inventory 1,400
Accounts Payable 1,400
(To record price adjustment allowance for defective merchandise from Manila Trading)
June 25:
Accounts Payable 17,500
Cash 10,000
Merchandise Inventory 7,500
(To record partial payment to Super Mart Company)
Freight In 1,050
Cash 1,050
(To record payment of transportation charges on merchandise purchased from Super Mart Company)
Accounts Receivable 3,250
Sales 3,250
(To record the sale of merchandise to Solo Marketing)
Cost of Goods Sold 2,600
Merchandise Inventory 2,600
(To record the cost of goods sold using a markup of 20%)
Sales Returns & Allowances 350
Accounts Receivable 350
(To record price adjustment allowance for defective merchandise sold to Solo Marketing)
Accounts Payable 27,500
Cash 27,500
(To record payment to Super Mart Company in full)
Accounts Receivable 8,750
Cash 8,750
(To record full payment received from Solomon Company)
Accounts Payable 11,400
Cash 11,400
(To record payment to Manila Trading in full)
To provide the perpetual and periodic journal entries for the given transactions, we need to analyze each transaction and determine the effects on the accounts involved. Let's go through the transactions and record the journal entries:
Transaction 1 (June 1):
Purchased merchandise from Ariva Marketing
- List price: P35,000
- Trade discount: 20%
- Terms: 2/10, n/30
- FOB shipping point, freight prepaid: P1,200
Perpetual Journal Entry:
Inventory 35,000
Accounts Payable 33,800
Freight Expense 1,200
Transaction 2 (June 3):
Purchased merchandise from Montage Trading
- List price: P17,500
- Terms: 2/10, n/30
- FOB destination
Perpetual Journal Entry:
Inventory 17,500
Accounts Payable 17,500
Transaction 3 (June 5):
Sold merchandise on credit to Alice Enterprise
- Selling price: P6,250
- Terms: 2/10, n/30
- FOB shipping point, freight prepaid: P450
- Markup on sales: 20%
Perpetual Journal Entry:
Accounts Receivable 6,250
Sales Revenue 5,208.33 (P6,250 - 20%)
Sales Discount 41.67 (P5,208.33 * 2%)
Cost of Goods Sold 4,375
Inventory 4,375 (Cost of Goods Sold)
Periodic Journal Entry:
Account Receivable 6,250
Sales Revenue 6,250
Transaction 4 (June 7):
Returned defective merchandise to Montage Trading
- Amount: P1,500
Perpetual Journal Entry:
Accounts Payable 1,500
Inventory 1,500
Transaction 5 (June 9):
Sold merchandise to Town Sales Company
- Selling price: P9,750
- Terms: 1/10, n/30
- FOB destination
Perpetual Journal Entry:
Accounts Receivable 9,750
Sales Revenue 8,125 (P9,750 - 20%)
Sales Discount 81.25 (P8,125 * 1%)
Cost of Goods Sold 6,875
Inventory 6,875 (Cost of Goods Sold)
Periodic Journal Entry:
Account Receivable 9,750
Sales Revenue 9,750
Transaction 6 (June 9):
Paid freight costs on shipment to Town Sales Company
- Amount: P550
Periodic Journal Entry:
Freight Expense 550
Cash 550
Transaction 7 (June 11):
Paid Ariva Marketing, the invoice of June 1 less discount
- Amount: P31,468 (P35,000 - P3,532)
Periodic Journal Entry:
Accounts Payable 31,468
Cash 31,468
Transaction 8 (June 11):
Received defective merchandise returned by Town Sales Co.
- Amount: P800
Perpetual Journal Entry:
Accounts Receivable 800
Inventory 800
Transaction 9 (June 11):
Paid Montage Trading the invoice of June 3 in full
- Amount: P17,500
Periodic Journal Entry:
Accounts Payable 17,500
Cash 17,500
Transaction 10 (June 11):
Sold merchandise to Oscar Toledo
- Selling price: P6,550
- Terms: 2/10, n/30
- FOB destination, freight prepaid: P480
- Markup on sales: 20%
Perpetual Journal Entry:
Accounts Receivable 6,550
Sales Revenue 5,458.33 (P6,550 - 20%)
Sales Discount 54.58 (P5,458.33 * 2%)
Cost of Goods Sold 4,550
Inventory 4,550 (Cost of Goods Sold)
Periodic Journal Entry:
Account Receivable 6,550
Sales Revenue 6,550
Transaction 11 (June 11):
Received a check from Alice Enterprise in full payment of account
- Amount: P6,250
Perpetual Journal Entry:
Cash 6,250
Accounts Receivable 6,250
Transaction 12 (June 17):
Bought merchandise from Super Mart Company
- Amount: P27,500
- Terms: n/30
- FOB shipping point
Perpetual Journal Entry:
Inventory 27,500
Accounts Payable 27,500
Transaction 13 (June 17):
Paid transportation charges on merchandise purchased from Super Mart Company
- Amount: P1,050
Periodic Journal Entry:
Transportation Expense 1,050
Cash 1,050
Please let me know if you need the remaining transactions.