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PERPETUAL INVENTORY System Transaction

The document provides instructions for journal entries for transactions made by a company throughout the month of December, including purchasing and selling merchandise for cash and credit, issuing and receiving credit memos, paying freight charges, and receiving payments.

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2K views1 page

PERPETUAL INVENTORY System Transaction

The document provides instructions for journal entries for transactions made by a company throughout the month of December, including purchasing and selling merchandise for cash and credit, issuing and receiving credit memos, paying freight charges, and receiving payments.

Uploaded by

JayMorales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PERPETUAL INVENTORY SYSTEM

INSTRUCTIONS: Prepare the journal entry of the following transactions.


Write the journal entry in your ACCOUNTING NOTEBOOK. Please observe
neatness and cleanliness. Erasures are not allowed. Should be written in all
capitals. To ensure originality of work, there should be a signature above name
at the bottom of every page.

A company had the following transactions during December:

December 1 -Sold merchandise on credit for PHP5,000, terms 3/10, n/30. The
items sold had a cost of PHP3,500.

December 2 -Purchased merchandise for cash, PHP720.

December 3 -Purchased merchandise on credit for PHP2,600, terms 1/20, n/30.

December 4 - Issued a credit memorandum for PHP300 to a customer who


returned merchandise purchased on November 29. The returned items had a
cost of PHP210.

December 5 - Received payment for merchandise sold on December 1.

December 6 - Received a credit memorandum for the return of faulty


merchandise purchased on December 4 for PHP600.

December 7 - Paid freight charges of PHP200 for merchandise ordered last


month (FOB shipping point).

December 8 -Paid for the merchandise purchased on December 4, less the


portion that was returned.

December 9 - Sold merchandise on credit for PHP7,000, terms 2/10, n/30. The
items had a cost of PHP4,900.

December 10 Received payment for merchandise sold on December 9

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