Short Problems

1. ABC Company uses the Periodic method to record their transactions and has provided you their
Cost of Goods Sold Statement, providing the following:
Merchandise Inventory, Beg. P 40, 350
Add: Purchases ?
Less: Purchase Discounts P 13, 200
Net Purchases ?

Goods Available for Sale 150, 700

Merchandise Inventory, End (35, 850)

Cost of Goods Sold ?

Requirements:

a. Determine the amount of the Net Purchases

b. What is the amount of Cost of Goods Sold

2. ABC Co. purchased merchandise from XYZ Inc. worth P157, 500 by cash and the credit terms of
XYZ Inc. is 10; 20; 5/10; n/30; FOB Destination. What is the amount to be recorded by ABC Co as
their purchases?

3. Ha Hatdog Company purchased merchandise worth P 50, 350 from another entity. Ha Hatdog
Company uses the Perpetual Inventory System to record its transactions. What is the amount to
be posted in Ha Hatdog Company’s General Ledger titled Purchases from the transaction above?

4. The Good Old Boy Inc. provided you with its current Statement of Financial Position and
contains the following information:

Cash P 450, 000

Accounts Receivable ?
Allowance for Bad Debts 4, 200
Prepaid Supplies 15, 300
Merchandise Inventory, End 130, 250
Total Assets 651, 750

Accounts Payable 65, 240

Notes Payable ?
Total Liabilities ?

TGOB, Capital 426, 510

Requirements:

a. What is the amount of Accounts Receivable?

b. What is the Total Liabilities and Owner’s Equity?
c. What is the amount of Notes Payable?

5. MAGIGING CPA KAYO Company provided you with the following transactions that occurred in
May. The entity uses the Periodic Inventory System. Provide the journal entries of the following:

May 5 Sold P 120, 750 merchandise on account with credit terms 5; 10; 3/10; n/30 FOB
Destination; Freight Prepaid. Freight on the merchandise sold was P 150.
May 11 Received the full payment for the merchandise sold on May 5.
May 31 Received bill for electricity, P 3, 000.