Matching Type-Please provide explanation and solution on each item ;) Thank you will be more helpful and for my guidance :)

A. Purchase Requisition G. Invoice

B Purchase Order H. Official Receipt

C. Credit Memorandum I.Periodic lnventory System

D. Debit Memorandum J. Perpetual Inventory System

E. FOB Destination K. Purchases Discounts

F. FOB Shipping Point L. Trade Discounts

Required:

From the list of terms above, select the one that relates to each of the following statements:

1 This is an authorization made by the buyer to the seller to deliver the merchandise

2 It is the discount taken by the buyer for the early payment of an invoice as detailed in the form.

3 The document issued by the seller authorizing the return of merchandise or the grant of an allowance.

4 This document evidences the receipt of cash by the seller.

5. This transportation arrangement passes ownership to the goods to the buyer only when the buyer receives the merchandise.

6. Under this inventory system, revenues from sales are recorded when sales are made, but no attempt is made on the sales date to record the cost of goods sold.

7.Under this inventory system, both the sales amount and the cost of goods sold amount are recorded when each item of merchandise is sold.

8. The document prepared by the seller of goods and sent to a buyer detailing the specifics of a sale.

9.This discount encourages the buyers to purchase goods because of markdowns from the list price.

10.This is the shipping term if the buyer shoulders the shipping costs.

Multiple Choice- Please provide explanation and solution on each item ;) Thank you will be more helpful and for my guidance :)

1. On March 1, Vicente purchased merchandise with an invoice price of P270,000 and

2/10, n/30 terms. On March 3, Troy paid P10,000 transportation cost on the

What was

purchased goods. On March 10, Vicente paid for the merchandise. What was

Vicente's total cost of the purchased merchandise?

a. P270,000

b. P274,400

P274,600

d. P280,000

2. Winston started business on Jan. 1. During the year, the company purchased

merchandise with an invoice price of P5,000,000. Winston paid P200,000 freight on

the merchandise. During the year, Winston returned P800,000 of the merchandise

to its suppliers. All purchases were paid for in a timely manner, and a P100,000 cash

discount was taken. P4,180,000 of the merchandise was sold for P6,270,000. What

was the Dec. 31 balance in the Inventory account?

a. P820,000

b. P320,000

c.P120,000

d P20,000

3. Gabriela uses the perpetual inventory system. Gabriela purchased merchandise

with an invoice price of P80,000, terms 2/10, n/30. If Gabriela returneo

merchandise with an invoice price of P20,000 to the supplier, what should the

journal entry to record the return include?

a. Debit to Inventory P20,000

b. Debit to Inventory P19,600

CCredit to Inventory P20,000

d. Credit to Inventory P10,000

4. Carl purchased P50,000 merchandise from the Sartre with terms of 3/10, n/30. Ho

much discount is Carl entitled to take if it paid within the allowed discount n/30. perio How

10 days?

a. P500

b. P1,000

P1,500

d. P3,000

5. Cormack purchased merchandise with a list price of P60,000 from the Murray.

Murray offers its customers credit terms of 2/10, n/30. What amount should

Cormack pay if the cash discount is taken?

a. P59,400

b. P60,600

C. P61,200

d. P58,800

6. Luis began the period with P200,000 in inventory. The entity purchased an

additional P200,000 of inventory and returned P20,000 for a full credit. A physical

count of the inventory at year-end revealed an inventory on hand of P160,000.

What was Luis' costs of goods sold for the period?

a. P160,000

P220,000

C.P480,000

d. P500,000

Multiple Choice-

1. Which of the following journal entry is correct for the transactions of goods

returned by a customer?

Account to be debited Account to be credited

a Sales returns Trade payables

(b. Sales returns Trade receivables

C. Purchases returns Trade payables

d. Purchases returns Trade receivables

2.Suppose an entity purchases P50,000 goods on credit. The journal entry should be

Account to be debited Account to be credited

a. Purchases Cash

b. Accounts payable Purchases

CPurchases Accounts payable

d. Accounts receivable Accounts payable

3. Which of the following cases show(s) the situation(s) that the list price is higher than the net price after a deduction as stated on the sales invoice?

1. There is a trade discount of 5% given by the seller.

2. There is a cash discount of 5% given by the seller.

3. Some goods are returned to the supplier.

a. (1) only

b. (2) only

C. (1) and (3) only

d. (2) and (3) only

Based on the following information, answer Questions 4 to 5.

Suppose xYz Trading has completed the following transactions in September 2019.

1. sales of goods of P10,000 to Company A on credit

2. purchase of goods of P20,000 from Company B on credit

3. purchase of goods of P25,000 from Company C on credit

4. sales of office-use computer of P10,000 to Company D on credit

4What is total amount recorded in the sales account for this month?

a.) P10,000

a P20,000

C. P55,000

d. P65,00o

5 Which of the following shows the correct journal entry for transaction 1?

Account to be debited Account to be credited

Accounts Receivable Sales

b. Accounts Payable Sales

C. Sales Sales

d. Cash Sales

6 Which of the following is not a reason for sales discounts to be offered to the

debtors?

a. increase the amount paid by the debtors

b. improve the liquidity by turning the accounts receivable into cash

C. encourage earlier settlement of debts by debtors

d. reduce the level of bad debts

7. Which of the following statements is correct about credit period?

a. If a customer purchases goods within the credit period, a cash discount will be allowed to the customer.

b. If a customer settles the payment within the credit period, a cash discount will be allowed to the customer.

c. It refers to the period in which customers must settle their debts due.

d. It refers to the period in which customers need to settle one-third of the debts in order to avoid further interests charged.

8.ABC Company sold 10 units of goods with a unit list price of P2,000 on Jan. 1, 2019. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on Jan. 28, 2019, what is the actual amount he needs to pay?

a. P17,100 2x 0oo0 20 ooo

b. P18,050 - 10OOO

CP19,000

d. P20,000

9. Which of the following is correct about purchases discounts?

a. It refers to the discounts offered by a third party for some reasons.

b. It refers to the discounts enjoyed by customers due to bulk purchases.

c. It refers to the discounts offered by the supplier to customers due to the earlier settlement of debts.

d. It refers to a reduction in list price.

Based on the following information, answer Questions 10 to 11.

Suppose UCU Store received the settlement of debt from Lindbergh Soriano by cash.

Lindbergh Soriano purchased goods with a list price of P100,000 on Jan. 1 with a trade

discount of 5%. Suppose the cash discount period is 15 days with a cash discount,of 4%

and Lindbergh Soriano settled the payment on Jan. 10 in full.

10. What is the amount of sales discounts given to Lindbergh Soriano?

a. P1,380 00,0oox I1:spoD

bP3,800 X

C. P4,000

d. P5,000

11. The correct journal entry for the settlement of debts owed by Lindbergh Soriano

should be:

Account(s) to be debited Account(s) to be credited

a. Cash P91,200 Accounts Receivable P95,000

Sales Discounts P3,800

b. Cash P96,000 Accounts Receivable P100,000

Sales Discounts P4,000

C. Accounts Receivable P100,000 Sales Discounts P4,000

Cash P96,000

d. Accounts Receivable P95,000 Cash P95,000

Sales Discounts P3,800

12. Which of the following statements regarding cash purchases discounts fro

Suppliers is/are correct?

1. Thev are reductions in the retail prices by the manufacturers.

2. They are revenues to the entity.

3. The cash account is debited wnen they are received by the entity

a.(2) only

b. (3) only

C. (1) and (2) only

d. (1) and (3) only

13. Which of the following is a correct definition of gross profit?

a. Gross Profit = Profit Other Expenses

b. Gross Profit = Net Sales - Net Purchases

CGross Profit = Net Sales Cost of Goods Sold

d. Gross Profit = Net Purchases+Cost of Goods Sold

14. Which of the following items can lead to a difference between values of profit and

gross profit?

a. sales returns

b. purchases returns

C. transportation in

d. transportation out

15. What is the meaning of transportation in?

a. the expenses spent on carrying the returned goods from customers

b. the expenses spent on carrying the goods returned to suppliers

C the expenses spent on carrying the goods sold to customers

d.the expenses spent on carrying the goods purchased from suppliers to the entity

16. Which of the following equations correctly shows the meaning of net sales?

a.Net sales Gross sales - Purchases

b.Net sales Gross sales - Sales returns

C Net sales Gross sales - Purchases returns

d. Net sales = Gross sales - Sales returns - Transportation In

17.Which of the following refers to the meaning of transportation out?

a. It refers to the expense needed to sell the g0ods to the customers.

b.It refers to the expense needed to transport the goods sold to the customers.

C.It refers to the expense incurred in advertising the goods available.

d. It refers to the expense regarding the manpower cost needed to produce the

products.