Scribd
Upload
1K views

ACCOUNTING 2 Review

1. The company purchased 1,000 goods for $600 each totaling $600,000 on terms of 1/10 net 45. They sold 700 goods for $900 each totaling $630,000 on terms of 1/10 net 30. They returned 150 defective goods purchased and the buyer returned 85 defective goods. 2. The document provides instructions and examples for accounting entries related to purchases, sales, returns, discounts and payments. It discusses entries for the seller and buyer in various scenarios involving purchases, sales, returns and payment terms. 3. The questions cover topics like calculating cash discounts, determining cost of goods sold, recording entries for purchases and sales with discounts and returns, and preparing perpetual entries for

Uploaded by

AhnJello
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
1K views

ACCOUNTING 2 Review

1. The company purchased 1,000 goods for $600 each totaling $600,000 on terms of 1/10 net 45. They sold 700 goods for $900 each totaling $630,000 on terms of 1/10 net 30. They returned 150 defective goods purchased and the buyer returned 85 defective goods. 2. The document provides instructions and examples for accounting entries related to purchases, sales, returns, discounts and payments. It discusses entries for the seller and buyer in various scenarios involving purchases, sales, returns and payment terms. 3. The questions cover topics like calculating cash discounts, determining cost of goods sold, recording entries for purchases and sales with discounts and returns, and preparing perpetual entries for

Uploaded by

AhnJello
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
You are on page 1/ 4

ACCOUNTING 2

Prepare Perpetual and Periodic Entry


1. Purchased 1,000 of goods at a cost of 600 each. Terms of
payment 1/10, net 45.
2. Sold 700 of goods to ACC Enterprise. The selling price was
900 per good. Terms: 1/10, net 30.
3. Returned 150 of the goods purchased because they were
defective.
4. ACC Enterprise returned 85 goods because of the defect.
5. Paid trucking firm 5,000 for the 1,000 goods purchased.
6. A buyer received an invoice for 6,000 dated June 10. If the
terms are 2/10, n/30, and the buyer paid the invoice within
the discount period, what amount will be the seller receive,
and what will be the entry?
7. Olive Valenzuela Traders purchased merchandise from San
Jose Suppliers for 3,600 list price, subject to a trade discount
of 25%. The goods were purchased on terms of 2/10, n/30,
FOB Destination. Valenzuela paid 100 transportation costs.
Valenzuela returned 400 (list price) of the merchandise to
San Jose and later paid the amount due within the discount
period. What will be the entry for the seller and buyer and
how much is the amount?
8. The December 31, 2010 trial balance for Aileen Maglana
Company included the following: purchases, 40 000;
purchase returns and allowances, 2 000; freight-in, 3 000;
ending inventory was 8 000. What was the cost of goods
sold for 2010?
9. On May 15, 2010, the Guzon Book Distributors acquired for
resale books on account with a list price of 108,000. Butuan
Publishing, the supplier, allowed a 15% trade discount as
well as credit terms of 2/10, n/30. Guzon paid the invoice in
full on May 2010. What will be the entry for seller and
buyer?
10.Sales on account, 650 000. Prepare perpetual entry.

You might also like