Journalizing Merchandising Transactions

Aileen Africa Traders engaged in the following transactions in October:

October 7 - Sold merchandise on credit to Lacson Retailers, terms n/30, FOB shipping point, P 30,000.

October 8 - Purchased merchandise on credit from Orcajada Wholesalers, terms n/30, FOB shipping point, P 60,000.

October 9 - Paid Mendoza Corp. for shipping charges on merchandise purchased on Oct. 8, P2,540.

October 10 - Purchased merchandise on credit from Ortiz Imports, terms n/30, FOB shipping, P90,000. Freight prepaid by Ortiz, P6,000.

October 13 - Purchased office supplies on credit from Dedumo Corp., terms n/ 10, P24,000.

October 14 - Sold merchandise on credit to Tagum Corp., terms n/30, FOB shipping, P24,000.

October 14 - Returned damaged merchandise received from Orcajada Wholesalers on Oct. 8 for credit, P6,000.

October 17 - Received check payment from Lacson Retailers for his purchase on Oct. 7.

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

October 19 - Sold merchandise for cash, P18,000.

October 20 - Paid Ortiz Imports for purchase of Oct. 10.

October 21 - Paid Orcajada Wholesalers the balance from the transaction on Oct, 8 and 14.

October 24 - Accepted from Tagum Corp. a return of merchandise, P2,000.

Required: Prepare the journal entries.

III.Preparing the Cost of Sales section of Income Statement.

Merchandise Inventory, 6/30/2020--------------- P 310,000

Merchandise Inventory, 7/1/2019 ------------------ 260,000

Purchases--------------------------------------------- 830,000

Purchases Returns and Allowances ---------------- 8,300

Purchases Discounts---------------------------------- 16,600

Transportation In --------------------------------------- 12,450

Required: Prepare the cost of goods sold section of the income statement of Marah Valimento Housewares for the year ended June 30, 2020.