Problem 9

Max Pretty Boy Company had the following transactions in December 2020:

Dec. 1 Ordered goods costing P500,000 from Dame Company at credit terms of 5/10, n/15, FOB Destination. Dec. 5 Sold goods at P200,000 to Pompom Company at credit terms of 2/10, 1/15, n/30 with cost of P150,000. Goods were shipped on the same day and the sale was made under FOB shipping point, freight collect. Dec. 7 Received goods ordered from Dame Company and paid freight of P20,000. Dec. 12 Pompom Company returned of the goods it sold due to incorrect specifications. Dec. 13 Returned goods to Dame Company costing P10,000 due to damage. Dec. 15 Collected in full from Pompom Company. Dec. 16 Paid Dame Company what is owed. Dec. 20 Paid Dame Company the remaining payable.

Prepare the journal entries under: a. Periodic Inventory System, Gross Method b. Periodic Inventory System, Net Method c. Perpetual Inventory System, Gross Method d. Perpetual Inventory System, Net Method