Trade Discount Credit Terms Date Paid

a. 30% 2/10, n/30 Jun-08

b. 40% 1/10, n/30 Jun-15
c. - 2/10, n/30 Jun-11
d. 20% 1/15, n/30 Jun-14
e. 40% n/30 Jun-28

1. The amount recorded as a sale

List Price Trade Discount Sales (Invoice Price)
a. 120,000 -36,000 84,000
b. 120,000 -48,000 72,000
c. 120,000 - 120,000
d. 120,000 -24,000 96,000
e. 120,000 -48,000 72,000

2. The amount of cash received

Sales (Invoice Price) Cash Discount Cash Received
a. 84,000 1,680 82,320
b. 72,000 - 72,000
c. 120,000 2,400 117,600
d. 96,000 960 95,040
e. 72,000 - 72,000
Date Account Titles Debit Credit
Oct. 6 Purchases, 200,000
Cash 200,000

12 Purchases, 3/10, n30 700,000

Accounts Payable 700,000

15 Accounts Payable, 50,000

Purchases Returns and Allowances 50,000

17 Accounts Payable, 650,000

Purchases Discount 19,500
Cash 630,500

19 Transportation In, 7,000

Cash 7,000
a. Shipping terms are F.O.B. shipping point, freight collect. Pascual paid the shipping costs on June 17 and remitted 5,880 on June 24. c. Shipping terms are F.O.B. shipping point, freight prepaid. Ilano paid the shipping costs on June 16 and added the 600 cost to invoice
sent to Pascual. Pascual remitted 6,480 on June 24.
Ilano POV:
Ilano POV:
Jun-16 Accounts Receivable, 6,000
Sales 2/10, n/30 6,000 Jun-16 Accounts Receivable, 6,600
Sales 6,000
Jun-25 Cash, 5,880 Cash 600
Sales Discount 120
Accounts Receivable, 6,000 Jun-25 Cash, 6,480
Sales Discount 120
Accounts Receivable 6,600
Pascual POV:

Jun-17 Purchases, 6,000 Pascual POV:

Freight-In 600 6,000
Accounts Payable 600 Jun-17 Purchases, 6,000
Cash Freight-In 600
Accounts Payable 6,600
Jun-24 Accounts Payable, 6,000
Purchses Discount 120 Jun-24 Accounts Payable, 6,600
Cash 5,880 Purchases Discount 120
Cash 6,480

b. Shipping terms are F.O.B. destination, freight prepaid. Ilano paid the shipping costs on June 16. Pascula remitted 5,880 on June 24. d. Shipping terms are F.O.B. destination, freight collect. Pascual paid the shipping cost on June 17 and deducted the amount owed to
Ilano. A copy of the freight bill to Ilano was provided with the June 24 cash remittance. Pascual remitted 5,280 on June 24.
Ilano POV:
Ilano POV:
Jun-16 Accounts Receivable, 6,000
Freight-Out 600 Jun-16 Accounts Receivable, 5,400
Sales 6,000 Freight-Out 600
Cash 600 Sales 6,000

Jun-25 Cash, 5,880 Jun-25 Cash, 5,280

Sales Discount 120 Sales Discount 120
Accounts Receivable 6,000 Accounts Receivable 5,400

Pascual POV: Pascual POV:

Jun-17 Purchases, 6,000 Jun-17 Purchases, 6,000

Accounts Payable 6,000 Accounts Payable 5,400
Cash 600
Jun-24 Accounts Payable, 6,000
Purchses Discount 120 Jun-24 Accounts Payable, 5,400
Cash 5,880 Purchases Discount 120
Cash 5,280
Date 2020 Account Titles Debit Credit Date 2020 Accounts Title Debit Credit
Mar-02 Purchases, Digao Publishers 2/10, n/30 74,000 Mar-16 Office Supplies, 4,780
Accounts Payable 74,000 Accounts Payable 4,780

3 Accounts Receivable, 10,000 17 Cash, 18,810

Sales, Detoya Books Shop 1/10, n/30 10,000 Sales Discount 190
Accounts Receivable 19,000
5 Cash, 7,000
Sales 7,000 18 Accounts Payable, 23,000
Purchases Discount 460
6 Purchases, Made Easy Book 2/10 n/30 42,000 Cash 23,040
Accounts Payable 42,000
19 Accounts Receivable, 7,800
7 Transportation In, 570 Sales, Sir Ed Trading 2/10, n/30 7,800
Accounts Payable 570
20 Accounts Payable, 1,280
9 Accounts Receivable, 38,000 Office Supplies 1,280
Sales, Recoletos Books 1/10, n/30 38,000
22 Sales Returns and Allowances, 1,800
10 Purchases, Digao Publishers 2/10, n/30 26,000 Accounts Receivable 1,800
Transportation In 500
Accounts Payable 26,500 25 Accounts Payable, 3,500
Cash 3,500
11 Transportation Out, 291
Accounts Payable 291 26 Accounts Payable, 861
Cash 861
12 Accounts Payable, 74,000
Purchases Discount 1,480 27 Cash, 5,880
Cash 72,520 Sales Discount 120
Accounts Receivable 6,000
13 Cash, 9,900
Sales Discount 100 28 Accounts Payable, 21,000
Accounts Receivable 10,000 Cash 21,000

14 Accounts Payable, 21,000 31 Cash, 9,730

Purchases Discount 420 Sales 9,730
Cash 20,580

15 Accounts Payable, 3,000

Purchases Returns and Allowances 3,000
 Christine Sousa Bags
Worksheet
For the Year Ended December 31 2020
Unajusted Trial Balance Adjustments Adjusted Trial Balance Income Statement
No. Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 72,000 72,000
Accounts Receivable 136,000 136,000
Merchandise Inventory 598,000 598,000 598,000 723,000
Office Supplies 42,000 a). 17,000 25,000
Prepaid Advertising 75,000 b). 25,000 50,000
Office Equipment 570,000 570,000
Accumulated Depreciation-Office Equipment 150,000 d). 20,000 170,000
Office Building 1,600,000 1,600,000
Accumulated Depreciation-Building 100,000 d). 15,000 115,000
Land 400,000 400,000
Accounts Payable 74,000 74,000
SAlaries Payable c). 21,000 21,000
Notes Payable due in 2 years. 200,000 200,000
Mortage Payable 1,100,000 1,100,000
Sousa, Capital 1,510,000 1,510,000
Sousa, Withdrawals 200,000 200,000
Sales 4,600,000 4,600,000 4,600,000
Sales Returns and Allowances 187,000 187,000 187,000
Sales Discounts 161,000 161,000 161,000
Purchases 2,643,000 2,643,000 2,643,000
Purchases Returns and Allowances 133,000 133,000 133,000
Purchases Discounts 172,000 172,000 172,000
Transportation In 72,000 72,000 72,000
Office Supplies Expense a). 17,000 17,000 17,000
Advertising Expense b). 25,000 25,000 25,000
Salaries Expense 862,000 c). 21,000 883,000 883,000
Insurance Expense 25,000 25,000 25,000
Travel Expense 188,000 188,000 188,000
Interest Expense 208,000 208,000 208,000
Depreciation Expense-Office Equipment d). 20,000 20,000 20,000
Depreciation Expense-Building d). 15,000 15,000 15,000
Total: ₱ 8,039,000.00 ₱ 8,039,000.00 ₱ 98,000.00 ₱ 98,000.00 ₱ 8,095,000.00 ₱ 8,095,000.00 ₱ 5,042,000.00 ₱ 5,628,000.00
₱ 586,000.00
₱ 5,628,000.00 ₱ 5,628,000.00
 Balance Sheet
Debit Credit
72,000
136,000
723,000
25,000
50,000
570,000
170,000
1,600,000
115,000
400,000
74,000
21,000
200,000
1,100,000
1,510,000
200,000

₱ 3,776,000.00 ₱ 3,190,000.00
₱ 586,000.00
₱ 3,776,000.00 ₱ 3,776,000.00
 Christine Sousa Bags Christine Sousa Bags
Income Statement Statement of Changes in Equity
For the Year Ended December 31 2020 For the Year Ended December 31 2020

Net Sales Sousa, Capital, Beginning 1,510,000

Gross Sales ₱ 4,600,000.00 Add: 586,000
Less: Sales Returns and Allowances ₱ 187,000.00 Total: 2,096,000
Sales Discounts 161,000 348,000 Less: 200,000
Net Sales ₱ 4,252,000.00 Sousa, Capital, Ending ₱ 1,896,000.00
Cost of Sales
Merchandising Inventory, Beginning ₱ 598,000.00
Purchases ₱ 2,643,000.00
Less: Purchases Returns and Allowances ₱ 133,000.00
Purchases Discounts 172,000 305,000
Net Purchases: ₱ 2,338,000.00
Add: Transportation In 72,000 Christine Sousa Bags
Net Cost of Purchases 2,410,000 Balance Sheet
Goods Available for Sale ₱ 3,008,000.00 For the Year Ended December 31 2020
Less: Merchandising Inventory, End 723,000
Cost of Sales 2,285,000 ASSETS
Gross Profit ₱ 1,967,000.00 Current Assets:
Operating Expense Cash ₱ 72,000.00
Selling Expenses - Accounts Receivable 136,000
Total Selling Expenses - Merchandise Inventory 723,000
Administrative Expenses Office Supplies 25,000
Office Supplies Expense ₱ 17,000.00 Prepaid Advertising 50,000
Advertising Expense 25,000 Total Current Assets ₱ 1,006,000.00
Salaries Expense 883,000
Insurance Expense 25,000 Non-Current Assets
Travel Expense 188,000 Land ₱ 400,000.00
Depreciation Expense-Office Supplies 20,000 Office Equipment ₱ 570,000.00
Depreciation Expense-Building 15,000 Less: Accumulated Depreciation-Office Equipment -170,000 400,000
Total Administrative Expenses 1,173,000 Office Building ₱ 1,600,000.00
Total Operating Expenses 1,173,000 Less: Accumulated Depreciation-Building -115,000 1,485,000
Operating Profit ₱ 794,000.00 Total Non-Current Assets 2,285,000
Total Assets ₱ 3,291,000.00
Finance Cost 208,000
LIABILITIES
Profit ₱ 586,000.00
Current Liabilities
Accounts Payable ₱ 74,000.00
Salaries Payable 21,000
Total Current Liabilities ₱ 95,000.00

Non-Current Liabilities
Notes Payable due in 2 years. ₱ 200,000.00
Mortage Payable 1,100,000
Total Non-Current Liabilities 1,300,000
Total Liabilities ₱ 1,395,000.00

OWNER'S EQUITY

Sousa, Capital, Dec. 31 ₱ 1,896,000.00

Total Liabilities and Owner's Equity ₱ 3,291,000.00
 Date Account Titles and Explaination PR Debit Credit
2020
Dec. 31 Merchandising Inventory,End 723,000
Sales 4,600,000
Purchases Return and Allowances 133,000
Purchases Discounts 172,000
Income Summary 5,628,000
To close temporary accounts with credit balances and to
establish the ending merchandise inventory

31 Income Summary 5,042,000

Merchandising Inventory,Beg. 598,000
Sales Returns and Allowances 187,000
Sales Discounts 161,000
Purchases 2,643,000
Transporataion In 72,000
Office Supplies Expense 17,000
Advertising Expense 25,000
Salaries Expense 883,000
Insurance Expense 25,000
Travel Expense 188,000
Interest Expense 208,000
Depreciation Expense-Office Supplies 20,000
Depreciation Expense-Building 15,000
To close temporary accounts with debit balances and remove
beginning inventory.

31 Income Summary 586,000

Sousa, Capital 586,000
To close the income summary account.

31 Sousa, Capital 200,000

 Sousa, Withdrawals 200,000
To close the withdrawal account.