Republic of the Philippines

Department of Education
Region V- Bicol
SCHOOLS DIVISION OF CATANDUANES
CALATAGAN HIGH SCHOOL
Virac, Catanduanes
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Fundamentals of Accounting, Business and Management 2

1st Semester SY 2019-2020

Accounting for Purchases and Sale of Merchandise

1. Record the following selected transactions of Real Department Store, a merchandising firm owned and managed by
Miss Topaz

2017
Jan 5 - Purchased merchandise, P1,500 from Northern Trading. Terms: Cash
10 - Purchased merchandise from Glad Earth Co. for P3,000 on account
15 - Purchased merchandise from Miles Corporation for P5,000. Terms: 25%
Downpayment, balance on account.
20 - Purchased store supplies, P2,000 from VFE Supply. Terms: Cash
23 - Purchased merchandise from ABC Inc. P3,000. Terms 30-day promisory note
25 - Purchased stores equipment from Singer Marketing P15,000. Terms: 20%
Downpayment balance, a 60-day promisory note.
28 - Purchased goods from ACE Marketing. P8,000. Terms: 25% downpayment,
Balance 45-day promisory note.
2. Record the following selected transactions of PAK Store
2017
Feb 10 - Purchased goods from AYO Co Corporation for P10,000. Terms: less 10% and
5%. 2/10, 1/20, n/60.
12 - An allowance was granted by AYO Co Corporation due to wrong specification,
P500.
22 - Paid the account in full.

3. Record the following selected transactions.

2017

March 2 - Purchased merchandise from VFE Enterprises, P15,000. Terms: 2/10,n/30

4 - Returned unsatisfactory merchandise to VFE Enterprises and received a

Credit memo for P800.

22 - Paid the account in full.

4. 2017

April 10 - Purchased goods from AYOSNA for P12,000. Terms. Less 5%, 2/5. 1/10, n/30

12 - An allowance was granted by AYOSNA due to wrong specifications, P700.

15 - Paid one-half of the account with AYOSNA

20 - Paid the account with AYOSNA in full.

5. Record the following transactions of NODEAL Department Store, a merchandising concern owned and managed by

Miss Tina Go.

2017

May 5 - Purchased merchandise for P5,000 from Glad Earth Commercial. Terms: 1/20, n/60

6 - Purchased merchandise from Southern Trading Inc. for P2,800. Terms: less 10%,n/30

7 - Purchased merchandise from Shaman Enterprises for P5,000. Terms: 20% downpayment,

Balance n/60

8 - Paid freight on the above purchases, P150 cash

9 - Returned unsatisfactory merchandise to Shaman Enterprises and received a credit memo

For P200

11 - Purchased a cash register from North East Equipment company for P5,500. Terms: less

10%, 1/10, n/30.

12 - Paid freight on the above purchases, P100 cash

15 - Paid account with Glad Earth Commercial in full.

21 - Paid account with North East Equipment Company in full.

23 - Miss Tina Go withdrew cash of P500 and merchandise acquired at a cost of P500 and

Priced to sell for P850.

25 - Purchased merchandise from Elite Commercial for P3,250. Terms: Cash

27 - Purchased wrapping papers and tine for P1,000 from Ace Commercial. Terms: COD

6. Record the following selected transactions of Real Department Store, a merchandising firm, owned and managed by

Miss Marquez

2017

Jan 1 - Sold merchandise for cash, P2,000

2 - Sold merchandise to D and L Store for P4,000. Terms n/30

3 - Sold merchandise to Moby Enterprises for P3,500. Terms: P500 downpayment, balance,

1/10, n/30.

4 - Sold merchandise to Living Company, P2,500. Terms a 30-day, 18% promisory note

5 - Sold merchandise to Sikat Store, P4,500. Terms: 1,500 downpayment, balance, a

30-day, 12% note.

7. Record the following selected transactions of PET Store:

2017

Feb 2 - Sold merchandise to Sabrina Mdse for P5,000. Terms: 2/5. n/30.

3 - Sold merchandise to Sta. Clara Cooperative for P10,000. Terms: a 30-day 12% note

5 - Sold merchandise for cash, P2,250.

6 - Sold an equipment for P2,500 cash. The equipment was acquired at a cost of P4,000

And has a net book value of P2,100.

7 - Collected in full account of Sabina Mdse.

11 - Sold merchandise to Sarmiento Fish Traders for P6,000. Terms: 50% downpayment,

Balance, 2/10, n/30.

12 - Paid freight on the above sale, P200.

15 - Gave cash refund of P250 for returns from cash customers.

21 - Collected the account of Sarmiento Fish Traders in full.

March 2 - Collected the note from Sta. Clara Cooperative in full.

8. Record the following selected transactions.

2017

March 1 - Purchased merchandise for cash, P4,500

3 - Sold merchandise for cash, P2,250

4 - Purchased merchandise from Deluxe Novelties for P5,000. Terms: 2/10, n/30.

5 - Received a cash refund of P150 for defective merchandise returned to supplier on purchase

Of June 1

7 - Purchased office furniture from Cresta Furnitures for P2,500. Terms: on account.

10 - Purchased office supplies for cash, P350.

11 - Sold merchandise to DEF Company for P3,000. Terms: n/30.

12 - Paid freight on the above sale, P200.

14 - Paid Deluxe Novelties in full of account.

16 - Received a cash refund for P50 for office supplies returned to supplier due to wrong

Specifications.

17 - Paid Cresta Furnitures in full account.

20 - Sold merchandise to Century Trading for P10,000. Terms: 20% downpayment, a 30-day

10% promisory note for P5,000, balance 1/10, n/30.

21 - Purchased merchandise from ATL’s Trading, P8,000. Terms: 2/10, n/30.

 22 - Paid freight on the above purchases, P250.

27 - The owner, Mr. Cruz, withdrew merchandise purchased at a cost of P500 and priced to

Sell at P780.

9. Record the following selected transactions.

2017

April 1 - Sold merchandise to RP Traders for P3,500. Terms: 2/5. n/30.

3 - Paid freight for the above sale, P150.

4 - Purchased merchandise from Kato Manufacturing Company for P2,500. Terms: 2/10.

n/30.

6 - Collected in full account from RP Traders.

7 - Freight of P120 was paid on the purchase of April 4.

8 - Received credit memo of P100 for merchandise returned to Katoi Manufacturing

Company due to wrong specifications.

10 - Sold merchandise to Quality Store for P1,000. Terms: 2/5. n/30

11 - Paid freight on the above sale, P100.

15 - Paid in full account to Kato Manufacturing Company.

18 - Granted credit of P50 to Quality Store as allowance for the slightly defective items sold

To them on July 10.

19 - Purchased a cash register from Eastern Trading Corporation for P5,000. Terms: n/30.

- End -