Question
MVA Clothing Company uses the periodic inventory system. The following are the transactions occurred in the month of August: Aug 2: Purchased merchandise from KBD,
MVA Clothing Company uses the periodic inventory system. The following are the transactions occurred in the month of August:
Aug 2: Purchased merchandise from KBD, Inc. for credit for P25,000, terms 2/10, 1/15, n/30 (FOB shipping point).
Aug 6: Returned faulty merchandise purchased for P1,500 on Aug 2 to KBD, Inc. for credit
Aug 9: Purchased merchandise on account from CMM Inc., for P12,000, terms 3/15 (FOB Destination)
Aug 11: Paid freight charges of P850 for merchandise ordered from KBD, Inc.
Aug 15: Paid KBD, Inc. for the merchandise purchased on August 2
Aug 18: Purchased merchandise for cash, P9,800
Aug 25: Paid CMM, Inc. for merchandise purchased
1. The Net Purchases for the month of August amounted to?
2. Assuming MVA Clothing Company paid KBD, Inc. on August 11 and not on August 15, the Net Purchases for the month amounted to?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started