ASSESSMENT TASK 8-2

Journalizing merchandising transactions

Lenore Homewares engaged in the following transactions in October:

Oct. 7 Sold merchandise on credit to Lacson Co., terms 0/30, FOB shipping point, P30,OO.

8 Purchased merchandise on credit from Orcajada Co., terms n/30 FOB shipping point,

P60,000.

9 Paid Mendoza Co. for shipping charges on merchandise purchased on Oct. 8, P2,540.

10 Purchased merchandise on credit from Ortiz co., terms n/30, FOB shipping, P90,000.

Freight prepaid by Ortiz, P6,000.

13 Purchased office supplies on credit from Isagan Co., terms n/10, P24,OOO.

14 Sold merchandise on credit to Pabelico Co., terms n/30, FOB shipping point, P24,000.

14 Returned damaged merchandise received from Orcajada Co. on Oct. 8 for credit,

P6,000.

17 Received check payment from Lacson Co. for his purchase on Oct. 7.

18 Returned a portion of the office supplies received on Oct. 13 for credit, P4,000.

19 Sold merchandise for cash, P18,000.

20 Paid Ortiz Co. for purchase of Oct. 10.

21 Paid Orcajada Co. the balance from the transaction on Oct. 8 and 14.

24 Accepted from Pabelico Co. a return of merchandise, P2,000.

Required: Prepare the journal entries. ( Exclude VAT-related entries)