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Journal Entries in Merchandising Operations

The document contains journal entries for various merchandising transactions under both a periodic and perpetual inventory system. Transactions include purchases and sales of inventory for cash and on credit, as well as returns and collections. Under each system, detailed journal entries are provided that record inventory, cost of goods sold, sales, accounts receivable, accounts payable and cash amounts for each date.

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Arrabela Palma
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2K views4 pages

Journal Entries in Merchandising Operations

The document contains journal entries for various merchandising transactions under both a periodic and perpetual inventory system. Transactions include purchases and sales of inventory for cash and on credit, as well as returns and collections. Under each system, detailed journal entries are provided that record inventory, cost of goods sold, sales, accounts receivable, accounts payable and cash amounts for each date.

Uploaded by

Arrabela Palma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Journal Entries in

Merchandising Operations
EXERCISE 2.1 Journalizing transactions – Periodic Inventory System

The company sells with credit terms of 5/10, n/30 and had these transactions for the month:

October 1 Sold P10,000 of merchandise for cash


2 Bought merchandise on account, P20,000. Terms: 2/5, n/30.
4 Returned defective merchandise to supplier, P2,300.
5 Sold P32,000 worth of merchandise on account.
8 Customer returned P2,000 of merchandise related to October 5.
9 Paid the amount owed on October 2 transaction.
10 Collected half of the account on October 5.

Required: Prepare the entries on the above transactions using Periodic Inventory System.

Jun 1 – Cash 10,000 Jun 8 – Sales return 2,000


Sales 10,000 Accounts receivable 2,000
Jun 2 – Inventory 20,000 Jun 9 – Accounts payable 17.700
Accounts Payable 20,000 Cash 17,700
(2/5, n30) (20,000 – 2,300)
Jun 4- Accounts payable 2,300 Jun 10 – Cash 15,000
Inventory 2,300 Accounts receivable 15,000
(from Jun 2) [(32,000 – 2,000)x50%]
Jun 5 – Accounts receivable 32,000
Sales 32,000
EXERCISE 2.2 Journalizing transactions – Periodic Inventory System

The company sells with credit terms of 2/10, n/30 and had these transactions for the month:

June 1 Sold P10,000 of merchandise on account.


1 Bought P15,000 merchandise for cash
2 Bought merchandise on account, P15,000. Terms: 4/5, n/30.
5 Sold P32,000 worth of merchandise on account.
6 Paid amount owed on June 2 transaction.
8 Customer returned P2,000 of merchandise related to June 1.
10 Collected half of the account on June 5.
12 Collected the June 1 account.
14 Collected in full the June 5 transaction.
Required: Prepare the entries on the above transactions using Periodic Inventory System.
Jun 1 –Accounts receivable 10,000 Jun 8 – Sales return 2,000
Sales 10,000 Accounts receivable 2,000
(Jun 1)
Jun 1 – Purchases 15,000
Jun 10 – Cash 16,000 Accounts receivable 16,000
Cash 15,000
(from Jun 5 32,000 x50%)
Jun 2- Purchases 15,000
Accounts payable 15,000 Jun 12 – Cash 8,000
(4/5, net 30) Accounts receivable (10k-2k) 8,000
Jun 5 – Accounts receivable 32,000
Sales 32,000 Jun 15 – Cash 15,360
Jun 6 – Accounts payable 15,000 Sales discount (32,000 x 2%) 640
Cash 14,400 Purchase disc Accounts receivable 16,000
(15,000 x 4%) 600
EXERCISE 2.4 Journalizing transactions – Perpetual Inventory System

The company sells at a cost of 75% of the sales price with credit terms of 2/10, n/30 and had these
transactions for the month:

June 1 Sold P10,000 of merchandise on account.


1 Bought P15,000 merchandise for cash
2 Bought merchandise on account, P15,000. Terms: 4/5, n/30.
5 Sold P32,000 worth of merchandise on account.
6 Paid amount owed on June 2 transaction.
8 Customer returned P2,000 of merchandise related to June 1.
10 Collected half of the account on June 5.
12 Collected the June 1 account.
14 Collected in full the June 5 transaction.

Required: Prepare the entries on the above transactions using Perpetual Inventory System.
Jun 6 – Accounts payable 15,000
Jun 1 –Accounts receivable 10,000 Cash 14,400 Inventory (15,000 x
Sales 10,000 4%) 600
Cost of goods sold (10,000 x 75%) 7,500 Jun 8 – Sales return 2,000
Accounts receivable 2,000
Inventory 7,500
(Jun 1)
Jun 1 – Inventory 15,000 Inventory 1,500
Cash 15,000 Cost of goods sold (2,000 x 75%) 1,500
Jun 2- Inventory 15,000 Jun 10 – Cash 16,000 Accounts
Accounts payable 15,000 receivable 16,000
(4/5, net 30) (from Jun 5 32,000 x50%)
Jun 5 – Accounts receivable 32,000 Jun 12 – Cash 8,000
Sales 32,000 Accounts receivable (10k-2k) 8,000
Jun 15 – Cash 15,360
COGS 24,000 Sales discount (32,000 x 2%) 640
Inventory(32,000 x 75%) 24,000 Accounts receivable 16,000

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