Question
Lustrous Clothing Line has the following transactions: Dec 1: Lustrous purchased on account: 1,000 shirts at a cost of P500 each for a total of
Lustrous Clothing Line has the following transactions:
Dec 1: Lustrous purchased on account: 1,000 shirts at a cost of P500 each for a total of P500,000.
Dec 2: Lustrous purchased on account: 300 pairs of pants at a cost of P800 each for a total of P240,000.
Dec 4: Paid cash for separate shipping costs on the shirts purchased on July 1, P1,500. The supplier of the pants purchased on July 2 includes the shipping cost in the P800 purchase price.
Dec 6: Returned 30 of the shirts (costing 15,000) to the supplier because they were stained.
Dec 7: Returned 10 of the pants (costing 8,000) to the supplier because they were damaged.
Dec 9: Paid the shirt purchase. A 2% discount was given on the P135,000 bill [(1,000puchased - 30 returned) x P500] because of payment within the 10 day discount period (payment terms were 2/10, n/30)
Dec 15: Paid P120,000 for the pants purchase.
Dec 20: Sold on account: 600 shirts at a price of P999 each for a total of P599,400.
Dec 26: Sold on account: 200 pairs of pants at a price of P1,499 each for a total of P299,800.
Dec 31: Accepted return of 50 shirts by dissatisfied customers.
Requirements:
a)Prepare the necessary journal entry of the transactions assuming the company uses (1) Perpetual Inventory System and (2) Periodic Inventory System
b)Statement of Financial Position / Balance Sheet
c)Statement of Financial Performance / Income Statement
d)Statement of Cash Flow
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