Duration: 1 hour Direction: Answer the Practice Set for Merchandising Business. ABC Design - Periodic System In August 2020, Mr. Al Fabet put up a trading business, ABC Design Enterprise, with an initial investment of P15,000. During the month, the business completed the following transactions: August 2020 2- Purchased merchandise on account from National Distributors, P14,000 - terms, 2/10, n/30, FOB Shipping point - P170 4- Received credit from National Distributors for merchandise returned P450 6- Sold merchandise on account 12,200 with terms 1/15, n/30, FOB Destination - P150. 7 - Purchased computer unit on account worth P 15,000 giving a down payment of P 5,000 and the balanced charged to account with terms: 2/10, n/30 8-Issued credit memo to a customer worth P200 due to some defective goods sold. 9- Received a loan of P 25,000 on a short-term note payable from Metro Bank. 11-Paid National Distributors in full. 14- Purchased goods from Federal Trading worth P 17, 955 - terms 2/10, n/30 15-Paid Freight for August 14 purchase, P 220 16- Received credit memo from Federal Training for goods returned due to defects, P455. 17-Paid full amount due to the computer bought Aug 7. 18- Sold merchandise on account, P15,300 with terms: 2/10, n/30, FOB, Destination-P120. 19 - Made a credit refund to a customer for defective merchandise, P 250. 21-Received collections in full from customer billed on August 6. 23-Purchased office supplies in cash, P 2,500. 24-Paid half the amount due to Federal Trading for goods bought on Aug 14. 25-Owner withdrew P 3,000 for personal use. 28-Received partial payment of P 8,000 from customer billed on Aug 18. 29-Paid the salary of store assistant, P 4,500. 30 Sold merchandise to customer for cash, P10,000: FOB, Shipping Point - P100. After a physical count at the end of the month, merchandise inventory on hand is P5,569. 91 Page