DIRECTION: Prepare a POST CLOSING TRIAL BALANCE using PERPETUAL INVENTORY SYSTEM.

On January 1, 2018, NEUMAN MERCHANDISING began operations by selling construction materials. The owner Neuman invested Cash of P150,000 and a furniture which has a fair value of P200,000. The following are the transactions during the month of January: January 1 Purchased a machine for P25,000 from SM Appliance Center. FOB Destination, freight prepaid of P1,000, n/30. 3 Purchased construction merchandise from MARCKY TRADING for P35,000. FOB Destination, freight collect, 3/10, 2/15, n/30 4 Paid LOVE TRUCKING P500 for delivering the merchandise on the transaction on January 3 5 Purchase from NIKKI MANUFACTURING construction merchandise for P40,000. FOB Shipping point, freight collect, 7%, 3/10,n/eom. 6 Paid FedEX freight of P800 for the transaction on January 5. 7 Purchase P50,000 merchandise from ABS TRADING. FOB Shipping point, freight prepaid, 5%, 10%, 2/10, n/15. 8 ABS COMPANY paid LBC P1,000 for transportation of the merchandise to NEUMAN from the transaction on January 7. 10 Sold P40,000 worth of merchandise to FOUR RETAILERS. FOB Shipping point, freight collect of P500. 2/10, n/30. 11 Sold to DACKY MERCHANDISE construction materials for P100,000 plus shipping of P10,000. FOB Destination, freight collect, 10%, 3/15, n/30. 12 DACKY MERCHANDISE paid the freight on January 11 transaction. 13 Paid MARCKY TRADING half of the amount due for merchandise. Partial discount was allowed. 14 Sold to MR. ALEX merchandise at P150,000. FOB Shipping point, freight prepaid, 3/10, 2/15, n/eom. 15 Paid freight of P500 from the transaction on January 14. 15 Paid NIKKI MANUFACTURING P10,000. No discount was allowed on partial payment. 16 Returned P2,000 worth of merchandise to MARCKY TRADING. 16 Paid ABS TRADING P20,000 including freight. Partial discount was allowed. 17 Returned P10,000 worth of merchandise to ABS TRADING 18 Sold merchandise to cash customers, P25,000. FOB Destination, freight prepaid. 19 Paid the freight of P900 from the transaction in January 18. 19 Paid MARCKY TRADING in full. 20 Returned P1,000 worth of merchandise to NIKKI MANUFACTURING. 21 FOUR RETAILERS paid in full. 22 Purchased for cash merchandise of P50,000 from ACE HARDWARE. FOB Destination, freight prepaid. 23 ACE HARDWARE paid the freight of P300 from the transaction in January 22. 24 Paid ABS TRADING. 25 Collected P49,000 from MR. ALEX net of discount. 27 MR. ALEX returned merchandise worth P20,000. 31 Settled the account to NIKKI