The company records purchase of merchandise at gross of invoice price. The company uses the average cost valuation method. During December, last month of calendar year, the following transactions were completed: 01-Dec 03-Dec 04-Dec 06-Dec 07-Dec 10-Dec Received P26,000 cash from JRP Trading Co. on account, no discount. Purchased 60 units of bag merchandise on account at P 1,000 per unit from Angeles Alliance Co., terms 2/10, n/30, FOB shipping point. Paid transportation charges on purchase of December 3, P1,500. Issued check no.10767. Freight IN account is used to record inbound deliveries. Sold 80 units of merchandise on account to Island Haze, terms 2/10, n/30 FOB shipping point, at P1.200 for each bag. Determine cost of the merchandise sold using the company's valuation method. Purchased store supplies for P1.400 and issued check for payment. Issued check no. 10768. Sold 50 units of bag merchandise for cash at P1,480 for each bag. Paid for merchandise purchased on December 3, less discount. Issued check no. 10769 for the amount paid. Purchase discount availed is recorded as a credit to Purchase Discount Taken. Received 5 units of bag merchandise returned on sale of December 6, and credited to customer account. The receipt of bag was correspondingly updated to inventory subsidiary ledger. Determine cost of the merchandise returned. Paid rent for December, P8,000. Issued check no. 10770 Daceiveriach from calent Deramlar 6 lece return of Derember 14 and discount Received cash from sale of December 6, less return of December 14 and discount. Purchased 40 units of bag merchandise from Leatherware Co, for P41,600. Issued check no. 10771 for payment. 13-Dec 14-Dec 15-Dec Ikkar 16-Dec 18-Dec 19-Dec 20-Dec 21-Dec 22-Dec 24-Dec Sold 80 bags to Hoodwink for P1,240 per bag. Terms FOB Destination 3/15.n/45 Paid P23,800 to Bench on account, no discount. Issued check no. 10772. Purchased 86 bags merchandise on account from Unison Pan Co., terms 1/10, n/30, FOB destination, for P90,000 less trade discount of P2.280. Received P72,480 check payment from Simply Shoe Inc. on account, no discount. Returned 4 pcs of damaged merchandise purchased on December 21, receiving credit from the seller. Refunded cash on 2 pcs of sales returns previously sold for cash last December 10, P2.960. Issued check no 10773. Record the receipt and also the cost of the merchandise returned. Paid salaries of P 33,960. Issued check no. 10774 for encashment and release to each employees, Paid advertising expense to Jimin and Suga for December marketing campaign. Issued check no 10775 for P6,000. Received P 12.800 from Munsing Company on account, no discount. Paid for purchase of December 21. less return of December 24 and discount. Issued check no. 10776 26-Dec 28-Dec 29-Dec 30-Dec 31-Dec Instructions 1 Journalize the transactions for December. Omit explanations (26 points) Record transactions to the nearest Peso. Use the following format of recording to an inventory subsidiary ledger to compute average cost: (5 pts) and inventory shrinkage. Compute unit cost to the nearest hundredths. (5 points) Date Purchased/Receipt from Returns Sold/Returns to Supplier Units Unit Cost Amount Units Unit cost Amount Beg bal Inventory Balance Units Unit cost Total 254 995.28 252,800 Kate Spade Co. is a barrel bag retailer founded in January 2003 by Kate and Andy Spade. The Barrel Bag is a cylindrical bag with barrel-shaped compartments. Popular amongst athletes for their versatile carry options whether handheld or on the shoulder body. The Barrel Bag is typically made with cloth like materials. The company uses the perpetual inventory system. The account balances for Kate Spade Co. as of December 1, 2020, are as follows: 110 Cash 111 Notes Receivable 112 Accounts Receivable 60,640 20,000 124,880 10,400 252,800 15,000 113 115 116 117 10.200 123 417,200 124 50,400 210 Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Income Tax Payable Share Capital Retained Earnice 311 Retained Earnings 312 Dividends 73.800 211 219 310 400.000 (311 67.520 400,000 67,520 40,000 313 410 411 3,263,000 82,400 412 52,800 510 2,153,200 511 18,000 512 520 14.800 521 Income Summary Sales Sales Returns and Allowances Sales Discounts Cost of Merchandise Sold Freight in Purchase Discount Taken Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Provision for Doubtful Accounts Rent Expense Insurance Expense Miscellaneous Expense Provision for Income tax Interest Revenue 379,600 72,000 522 523 524 525 74.400 526 15,600 529 17.800 530 74.400 611 1.000 The company records purchase of merchandise at gross of invoice price. The company uses the average cost valuation method. During December, last month of calendar year, the following transactions were completed: 01-Dec 03-Dec 04-Dec 06-Dec 07-Dec 10-Dec Received P26,000 cash from JRP Trading Co. on account, no discount. Purchased 60 units of bag merchandise on account at P 1,000 per unit from Angeles Alliance Co., terms 2/10, n/30, FOB shipping point. Paid transportation charges on purchase of December 3, P1,500. Issued check no.10767. Freight IN account is used to record inbound deliveries. Sold 80 units of merchandise on account to Island Haze, terms 2/10, n/30 FOB shipping point, at P1.200 for each bag. Determine cost of the merchandise sold using the company's valuation method. Purchased store supplies for P1.400 and issued check for payment. Issued check no. 10768. Sold 50 units of bag merchandise for cash at P1,480 for each bag. Paid for merchandise purchased on December 3, less discount. Issued check no. 10769 for the amount paid. Purchase discount availed is recorded as a credit to Purchase Discount Taken. Received 5 units of bag merchandise returned on sale of December 6, and credited to customer account. The receipt of bag was correspondingly updated to inventory subsidiary ledger. Determine cost of the merchandise returned. Paid rent for December, P8,000. Issued check no. 10770 Daceiveriach from calent Deramlar 6 lece return of Derember 14 and discount Received cash from sale of December 6, less return of December 14 and discount. Purchased 40 units of bag merchandise from Leatherware Co, for P41,600. Issued check no. 10771 for payment. 13-Dec 14-Dec 15-Dec Ikkar 16-Dec 18-Dec 19-Dec 20-Dec 21-Dec 22-Dec 24-Dec Sold 80 bags to Hoodwink for P1,240 per bag. Terms FOB Destination 3/15.n/45 Paid P23,800 to Bench on account, no discount. Issued check no. 10772. Purchased 86 bags merchandise on account from Unison Pan Co., terms 1/10, n/30, FOB destination, for P90,000 less trade discount of P2.280. Received P72,480 check payment from Simply Shoe Inc. on account, no discount. Returned 4 pcs of damaged merchandise purchased on December 21, receiving credit from the seller. Refunded cash on 2 pcs of sales returns previously sold for cash last December 10, P2.960. Issued check no 10773. Record the receipt and also the cost of the merchandise returned. Paid salaries of P 33,960. Issued check no. 10774 for encashment and release to each employees, Paid advertising expense to Jimin and Suga for December marketing campaign. Issued check no 10775 for P6,000. Received P 12.800 from Munsing Company on account, no discount. Paid for purchase of December 21. less return of December 24 and discount. Issued check no. 10776 26-Dec 28-Dec 29-Dec 30-Dec 31-Dec Instructions 1 Journalize the transactions for December. Omit explanations (26 points) Record transactions to the nearest Peso. Use the following format of recording to an inventory subsidiary ledger to compute average cost: (5 pts) and inventory shrinkage. Compute unit cost to the nearest hundredths. (5 points) Date Purchased/Receipt from Returns Sold/Returns to Supplier Units Unit Cost Amount Units Unit cost Amount Beg bal Inventory Balance Units Unit cost Total 254 995.28 252,800 Kate Spade Co. is a barrel bag retailer founded in January 2003 by Kate and Andy Spade. The Barrel Bag is a cylindrical bag with barrel-shaped compartments. Popular amongst athletes for their versatile carry options whether handheld or on the shoulder body. The Barrel Bag is typically made with cloth like materials. The company uses the perpetual inventory system. The account balances for Kate Spade Co. as of December 1, 2020, are as follows: 110 Cash 111 Notes Receivable 112 Accounts Receivable 60,640 20,000 124,880 10,400 252,800 15,000 113 115 116 117 10.200 123 417,200 124 50,400 210 Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Income Tax Payable Share Capital Retained Earnice 311 Retained Earnings 312 Dividends 73.800 211 219 310 400.000 (311 67.520 400,000 67,520 40,000 313 410 411 3,263,000 82,400 412 52,800 510 2,153,200 511 18,000 512 520 14.800 521 Income Summary Sales Sales Returns and Allowances Sales Discounts Cost of Merchandise Sold Freight in Purchase Discount Taken Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Provision for Doubtful Accounts Rent Expense Insurance Expense Miscellaneous Expense Provision for Income tax Interest Revenue 379,600 72,000 522 523 524 525 74.400 526 15,600 529 17.800 530 74.400 611 1.000