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Problem Journalizing Merchandising Transactions

Janet Matuguinas Trading Company engaged in various merchandising transactions in October involving purchasing and selling inventory on credit terms and for cash, paying shipping and freight charges, returning damaged or unwanted inventory, and receiving and making payments. Journal entries would need to be made for each of these transactions to record increases and decreases to asset, liability, equity, expense and revenue accounts.

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jude santos
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1K views

Problem Journalizing Merchandising Transactions

Janet Matuguinas Trading Company engaged in various merchandising transactions in October involving purchasing and selling inventory on credit terms and for cash, paying shipping and freight charges, returning damaged or unwanted inventory, and receiving and making payments. Journal entries would need to be made for each of these transactions to record increases and decreases to asset, liability, equity, expense and revenue accounts.

Uploaded by

jude santos
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Journalizing Merchandising Transactions

Prepare the journal entries for the following:

Janet Matuguinas Trading Company engaged in the following transactions in October:

 Oct 7 Sold merchandise on credit to Lacson Co., termsn n/30, FOB shipping
point, P30,000

 Oct 8 Purchased merchandise on credit from Orcajada Co., terms n/30, FOB
shipping point, P60,000

 Oct 9 paid Mendoza Co. for shipping charges on merchandise purchased on


Oct 8, P2,540.

 Oct 10 purchased merchandise on credit from Ortiz Co., terms n/30 FOB
shipping P90,000. Freight prepaid by Ortiz P6,000

 Oct 13 purchased office supplies on credit from Dedumo Co., terms n/10,
P24,000

 Oct 14 Sold merchandise on credit to Tagum Co., termsn n/30 FOB shipping
P24,000

 Oct 14 returned damaged merchandise received from Orcajada Co. on Oct 8


for credit, P6,000

 Oct 17 received check payment from Lacson Co for his purchase on Oct 7

 Oct 18 returned a portion of the office supplies received on Oct 13 for credit
P4,000

 Oct 19 sold merchandise for cash, P18,000

 Oct 20 paid Ortiz Co. for purchase of Oct 10

 Oct 21 paid Orcajada Co the balance from the transaction on Oct 8 and 14

 Oct 24 Accepted from Tagum Co a return of merchandise, P2,000

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