EXERCISE 2 MB Company regularly buys merchandise from LJ Suppliers and is allowed a trade discount of 20/10/10 from the list price. For the month of September, MB Company purchased merchandise with a list price of P200,000 and terms of 3/10, n/30. Compute the following: 1. The amount debited to Materials if purchases recorded at gross. 2. The amount debited to Materials if the purchases recorded at net. EXERCISE 3 On June 1, Morales Corporation purchase materials listed at P700,000 while receiving a trade discounts of 10%, and 5%, while the credit term is 5/10, n/30. Required: Journal entries to record the purchase and payments assuming a. Full payment is made on June 9. b. Full payment is made on June 30 using the following: 1. Gross Method 2. Net Method EXERCISE 4 An invoice for A, B, and C is received from Harp Corp. Invoice totals are A - P11,250; B - P13,500; and C - P15,750. The freight charges on this shipment of 18,000 pounds total P1,620. Weights for the respective materials are 4,500, 6,000, and 7,500 pounds respectively. Compute the following: 1. Entry to record the purchase of materials and freight using: a. Direct charging method. b. Indirect charging method. 2. Cost per pound to be entered on the stock cards for each material based on cost. 3. Cost per pound to be entered on the stock cards for each material, based on shipping weight.