1. Canary Menswear regularly buys shirts from Ube Company and is allowed trade discounts of 20% and 10% from the list price. Canary purchased shirts on May 9,2020 and received an invoice with a list price of P50,000 and payment terms of 2/10, n/30. Canary uses the net method of recording purchases. At what amount should Canary record the purchases?
2. On June 1, 2020, Pitt sold merchandise with a list price of P50,000 on Bull on account. Pitt allowed trade discounts of 30%, 20% and 10%. Credit terms were 2/15. n/40 and the sale was made FOB destination. Bull paid P2,000 of delivery costs. On June 12, 2020, how much did Pitt received from Bull as full payment?
3. A new entity manufacturing and selling consumable products has come out with an offer to refund the cost of purchase within one month after the sale if the customer is not satisfied with the product. When should the entity recognized the revenue?