Problem 10

Assuming that net purchases was P1,000,000 during the year and the ending merchandise inventory was P20,000 less than the beginning merchandise inventoryof P250,000, how much is the cost of goods sold?

Problem 11

Goods totaling P50,000 were purchased on February 2 with terms of 3/10, n/30. Returns of P10,000 were made of February 10. The amount of cash to be paid on February 12 is:

Problem 12

A P6,000 purchases on account was made. The entry to record the payment on account after the expiration of 2% discount is:

Problem 13

Under the perpetual inventory system, what is the entry to record a purchase of P60,000, 2/10, n/30?

Problem 14

Olive purchased merchandise from San Jose for P3,600 list price, subject to trade discount of 25%. The goods were purchased on terms of 2/10, n/30, FOB destination. Olive paid P100 transportation cost and returned P400 (list price) of the merchandise to San Jose andlater paid the amount due within the discount period. What is the amount paid by Olive?

Problem 15

The December 31 trial balance of Magdala Company included the following: purchases - P40,000, purchase returns and allowances - P2,000, transportation in - P2,500, ending inventory - P8,000. What is the amount of cost of sales?

Problem 16

On March 10, 2020, Jeffrey Company purchased P18,000 worth of merchandise from Marcos Company, 1/10, n/30, FOB destination. On March 12, Jeffrey paid P360 freight on the shipment. On March 15,Jeffrey returned P2,000 of merchandise for credit. What is the cash amount to be remitted byJeffrey to Marcos on March 19?

Problem 17

On June 8, 2020, Beatriz sold merchandise for P20,000 to Northern Company, 2/10, n/30. On June 12, P4,000 worth of merchandise was returned. What is the amount received by Beatriz on June 18?

Problem 18

Event Buddies had the following account balances on December 31:

Cash

181,100

Service Revenue

401,600

Salaries Expense

190,000

Equipment

500,000

Accounts Payable

135,000

Accounts Receivable

300,000

Blessie, Capital, Jan. 1

931,900

Taxes and Licenses Expense

45,000

Utilities Expense

82,400

Prepaid Rent

170,000

Additional information:

a.Accrued salaries at December 31 amounted to P30,700.

b.5% of theaccountsreceivable is estimated to be uncollectible.

c.Depreciation on equipment for the year amounted to P100,000.

d.P60,000 of the prepaid rent has expired.

What is amount of net income or net loss on December 31?

Problem 19

Using the data in Problem 18, what is the amount of total assets as of December 31?