7. Bought merchandise worth Purchases 20,000 Accounts Receivable 20,000 P20,0000. Terms n/30 Accounts Payable 20,000 Sales 20,000 8. Customer returned goods costing Accounts Payable 5,000 Sales Return 5,000 P5000 for being defective. Purchase Return 5,000 Accounts Receivable 5,000 9. Payment of the Balance Accounts Payable 15,000 Cash 15,000 Cash 15,000 Accounts Receivable 15,000 Sample Transaction with Down payment
Transaction BUYER’S Book SELLER’S Books
7. Bought merchandise worth Purchases 20,000 Accounts Receivable 10,000 P20,0000. Terms 50% downpayment Cash 10,000 Cash 10,000 and balance n/30 Accounts Payable 10,000 Sales 20,000 9. Payment of the Balance Accounts Payable 10,000 Cash 10,000 Cash 10,000 Accounts Receivable 10,000 Guide for transactions with Transportation Costs
Sellers Books Buyer’s Books
FOB Shipping Point; Freight Accounts Receivable XX Freight – In XX
Prepaid Cash XX Accounts Payable XX
FOB Shipping point; Freight No Entry Freight – In XX
Collect Cash XX
FOB Destination Point; Freight Freight Out XX No Entry
Prepaid Cash XX
FOB Destination Point; Freight Freight Out XX Accounts Receivable XX
Collect Accounts Payable XX Cash XX Sample Case: Provide for the Journal Entries
▪ Nov. 1 - Hi-tech purchased merchandise for 2,800 on credit
terms 2/5, n/30, FOB Shipping point and paid for the transportation cost amounting to 160 ▪ Nov. 3 - Hi tech discovers and returns 200 defective merchandise purchased on Nov. 1 ▪ Nov. 5 - Hi tech pays cash for Nov. 1 purchase. ▪ Nov. 10 - Hi tech sells merchandise for P3000 on credit ▪ Nov. 16 - The customer returns merchandise from the Nov. 10 transaction with a selling price of P400 Click icon to add picture
Pilar Company Bank Reconciliation Statement SEPTEMBER 30, 2020 Balance Per Bank Statement Add: Deposit in Transit Receipts Not Yet Deposited Total: P139,314.20 Deduct: Outstanding Checks