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Transaction Analysis The following are transactions of Juan dela Cruz for August 2020. The company uses a periodic inventory system. (Assume the company is a non-Vat registered business). August 1 Juan dela Cruz invested the following assets in his business: P400,000 cash; P50,000 worth of desks and chairs and store equipment valued at P20,000. 2 Mr. dela Cruz bought a computer for his business worth P60,000 giving a P10,000 down payment and the balance payable at the end of the month. 3 Purchased merchandise for cash, P12,000. Purchased merchandise from SM, P18,000. Terms 2/10, n/30. Purchased office supplies on account, P3,000 Sold merchandise to Mr. Allan on account, P40,00, terms, 2/10, n/30, FOB destination. 7 Paid advertising for the month of P15,000. 8 Purchased merchandise from XYZ Company, P20,000, terms 1/15, n/30, 9 Cash sales, P18,000. 10 Received credit for P2,000 from XYZ Company as an allowance for a slight defect on merchandise purchased. 12 Sold merchandise to Ms. Ramilyn on account, P40,000, terms 2/10, n/30, FOB Destination. 13 Paid freight on sale made to Ms. Ramilyn P1,000. Issued check to SM in full payment for the August 4 account. Sold merchandise to Mr. DJ P25,000, terms 2/10, n/30. 21 Collected the amount due from Mr. Alan for his August 6 account. 22 Received payment from Ms. Ramilyn. 23 Paid the amount due to XYZ Company. 31 Paid the August 2, invoice. 14 18