1.Selected transactions of G. Calma Trading during the first 15 days of January 2011 were as follows:

Cash sales of merchandisePhp50,000

Sales of merchandise on account15,000

Store supplies purchased on account2,500

Purchased of merchandise for cash40,000

Purchased of merchandise on account20,000 Freight paid on merchandise purchased1,800

Purchase discounts enjoyed3,900

Wages paid for the period10,000

Defective merchandise returned by

Customer, sold on account1,300

Returned defective merchandise purchased for cash1,000

Transactions during the second half of the month:

Cash sales105,000

Sales on account27,000

Freight paid on cash sales1,400

Purchases:

a)Php35,000, terms 2/10, n/30 (paid within discount period)

b)Php8,000, terms 10 - 10%, 5/5, n/30 (paid within discount period)

c)Php9,000, terms 1/10, n/30 (paid beyond discount period)

d)Php12,000 cash purchases, FOB destination (freight, Php1,200)

Wages paid for the second half of the month

10,000

Unpaid wages at the end of month

1,800

Utilities expense for the month (unpaid)

1,800

Interest earned on deposits

1,200

Additional information:

Merchandise inventory at the

beginning of the month8,000

Merchandise inventory at the

end of the month42,000

Store supplies on hand at the

end of the month900