ILLUSTRATIVE PROBLEM NO.

1
Mar-01 SOLD GOODS WORTH P100,000 ON ACCOUNT WITH THE FOLLOWING TERMS:
20% DOWNPAYMENT
BALANCE 5/15, N/45
CASH 20,000.00
ACCOUNTS RECEIVABLE 80,000.00
SALES 100,000.00

3 CREDIT MEMO NO. 5 WAS ISSUED FOR THE SPOILED AND EXPIRED GOODS RETURNED, P8,000.
SALES RET & ALLOW 8,000.00
ACCOUNTS RECEIVABLE 8,000.00

6 PARTIAL PAYMENT RECEIVED, P25,000

. CASH 25,000.00
ACCOUNTS RECEIVABLE 25,000.00

14 FULL PAYMENT RECEIVED FROM THE CUSTOMER

CASH 43,400.00
SALES DISCOUNT 3,600.00
ACCOUNTS RECEIVABLE 47,000.00 ***
72,000 X 5%

ILLUSTRATIVE PROBLEM NO. 2

Mar-01 SOLD GOODS WORTH P100,000 ON ACCOUNT WITH THE FOLLOWING TERMS:
20% DOWNPAYMENT
BALANCE 5/15, N/45
CASH 20,000.00
ACCOUNTS RECEIVABLE 80,000.00
SALES 100,000.00

3 CREDIT MEMO NO. 5 WAS ISSUED FOR THE SPOILED AND EXPIRED GOODS RETURNED, P8,000.
SALES RET & ALLOW 8,000.00
ACCOUNTS RECEIVABLE 8,000.00

6 PARTIAL PAYMENT RECEIVED, P25,000

. CASH 25,000.00
ACCOUNTS RECEIVABLE 25,000.00

20 FULL PAYMENT RECEIVED FROM THE CUSTOMER

CASH 47,000.00
ACCOUNTS RECEIVABLE 47,000.00
ILLUSTRATIVE PROBLEM NO 3
COMPANY POLICY- CASH DISCOUNT CAN BE AVAILED BY THE CUSTOMER EVEN ON PARTIAL PAYMENTS

Mar-01 SOLD GOODS WORTH P100,000 ON ACCOUNT WITH THE FOLLOWING TERMS:
20% DOWNPAYMENT
BALANCE 5/15, N/45
CASH 20,000.00
ACCOUNTS RECEIVABLE 80,000.00
SALES 100,000.00

3 CREDIT MEMO NO. 5 WAS ISSUED FOR THE SPOILED AND EXPIRED GOODS RETURNED, P8,000.
SALES RET & ALLOW 8,000.00
ACCOUNTS RECEIVABLE 8,000.00

6 PARTIAL PAYMENT RECEIVED, P25,000

. CASH 23,750.00
SALES DISCOUNT 1,250.00
ACCOUNTS RECEIVABLE 25,000.00
5% X 25,000

14 FULL PAYMENT RECEIVED FROM THE CUSTOMER

CASH 44,650.00
SALES DISCOUNT 2,350.00
ACCOUNTS RECEIVABLE 47,000.00
5% X 47,000

IF THE FULL PAYMENT IS MADE ON MARCH 20( WHICH IS ALREADY BEYOND THE
DISCOUNT PERIOD), WHAT WILL BE THE ENTRY?

Mar-20 CASH 47,000.00

ACCOUNTS RECEIVABLE 47,000.00

NO 13 PAGE 248
Aug-01 ACCOUNTS RECEIVABLE 12,000.00
SALES 12,000.00

CASH 3,600.00
ACCOUNTS RECEIVABLE 3,600.00

4 SALES RETURNS & ALLOWANCES 1,500.00

ACCOUNTS RECEIVABLE 1,500.00

10 CASH 6,762.00
SALES DISCOUNT 138.00
ACCOUNTS RECEIVABLE 6,900.00
 2% X 6900

page 247 no. 5

CASE A CASE B CASE C CASE D
SALES 440,000.00 260,000.00 870,000.00 1,250,000.00
LESS: COST OF SALES 225,000.00 185,000.00 640,000.00 825,000.00
GROSS PROFIT 215,000.00 75,000.00 230,000.00 425,000.00
LESS: OPERATING EXPENSES 140,000.00 105,000.00 320,000.00 275,000.00
NET PROFIT(LOSS) 75,000.00 - 30,000.00 - 90,000.00 150,000.00
 SALES 100,000.00
LESS: SALES RETURNS & ALLOW 8,000.00
SALES DISCOUNT 3,600.00 11,600.00
NET SALES 88,400.00

URNED, P8,000.

80-8=72-25=47

80k-8k 72k 25k

47k
72K X 5%
47K X 5%
80K X 5%
92K X 5%

47000 x 5% 2350 72000 25,000.00

72000 x5% 3600 47,000.00
80000 x 5% 4000
92000 x 5% 4600

URNED, P8,000.
L PAYMENTS

URNED, P8,000. SALES 100,000.00

SALES RETURNS & ALLOW - 8,000.00
SALES DISCOUNT - 1,250.00
NET SALES 90,750.00

* CASH 3,600.00
ACCOUNTS RECEIVABLE 8,400.00
SALES 12,000.00

* SALES 12,000.00
LESS: SALES RETURNS & ALLOW 1,500.00
SALES DISCOUNT 138.00 1,638.00
NET SALES 10,362.00
 CASE E
1,300,500.00
721,250.00
579,250.00
675,000.00
- 95,750.00
NO. 22 PAGE 251 PAGE 5
DATE PARTICULARS PR DR CR COMPOUND ENTRY
MAY 5 PURCHASES 134,400.00 PURCHASES 134,400.00
ACCOUNTS PAYABLE 201/ 134,400.00 FREIGHT-IN 6,160.00
2/10, N/30 FOB SHIPPING PT., FREIGHT COLLECT CASH 6,160.00
ACCOUNTS PAYABLE 134,400.00
FREIGHT-IN 6,160.00
CASH 6,160.00

10 ACCOUNTS PAYABLE 201 / 67,200.00

CASH 67,200.00

14 ACCOUNTS RECEIVABLE 102 / 69,440.00 Danilo customer

SALES 69,440.00
2/10, N/30, FOB DESTINATION

15 ACCOUNTS PAYABLE 201 / 67,200.00

CASH 64,512.00
PURCHASE DISCOUNT 2,688.00
134400 X 2%

16 FREIGHT-OUT 1,680.00
CASH 1,680.00

17 SALES RETURNS & ALLOW 2,632.00 69440-2632 66,808.00

ACCOUNTS RECEIVABLE 102 / 2,632.00

24 CASH 65,471.84
SALES DISCOUNT 1,336.16
ACCOUNTS RECEIVABLE 102 / 66,808.00
66,808 X 2%

25 PURCHASES 101,360.00 PURCHASES 101,360.00

CASH 50,680.00 ACCOUNTS PAYABLE 101,360.00
ACCOUNTS PAYABLE 201/ 50,680.00
2/10,N/30 50% DP FOB SHIPPING PT FREIGHT COLLECT ACCOUNTS PAYABLE 50,680.00
CASH 50,680.00
FREIGHT-IN 5,600.00
CASH 5,600.00
 29 CASH 25,000.00
ACCOUNTS RECEIVABLE 102/ 39,400.00
SALES 64,400.00

FREIGHT-OUT 560.00
CASH 560.00

31 ACCOUNTS PAYABLE 201 / 50,680.00

CASH 49,666.40
PURCHASE DISCOUNT 1,013.60
50,680 X 2%

ACCOUNTS RECEIVABLE 102

DANILO - May-14 69,440.00 May-17 2,632.00
RAMOS 39,400.00 29 39,400.00 24 66,808.00
TOTAL 39,400.00
108,840.00 69,440.00
BAL 39,400.00

ACCOUNTS PAYABLE 201

May-10 67,200.00 May-05 134,400.00
15 67,200.00 25 50,680.00
31 50,680.00
185,080.00 185,080.00

BAL 0
 SUPPLIER'S CARD
ANG'S FURNITURE
DATE PARTICULAF DR CR BALANCE
May-05 PI NO. XXX J5 134,400.00 134,400.00
10 OR NO. XX J5 67,200.00 67,200.00
15 OR NO. XX J5 67,200.00 -

HILL FURNISHINGS
DATE PARTICULAF DR CR BALANCE
May-25 PI NO XXX J5 101,360.00 101,360.00
25 OR NO XXXJ5 50,680.00 50,680.00
31 OR NO XXXJ5 50,680.00 -

CUSTOMER'S CARD /SUBSIDIARY LEDGERS

DANILO APARTELLE
DATE PARTICULARS F DR CR BALANCE
### SI NO. XXX J5 69,440.00 69,440.00
17 CM NO. XXX J5 2,632.00 66,808.00
24 OR NO XXX J5 66,808.00 -

MR. RAMOS
DATE PARTICULARS F DR CR BALANCE
### SI NO XXX J5 64,400.00 64,400.00
29 OR NO XXX J5 25,000.00 39,400.00