1. On January 10, 2013, A company bought materials for its production worth P400, 000 granting a 10% trade discount. On January 31, 2013, A company bought another set of materials for production worth P650, 000. This time, the seller grants a 10, 20, 30% trade discount to A Company.

1. Provide the journal entry for the transaction on January 10, 2013

b. Provide the journal entry for the transaction on January 31, 2013

2.) The Janelle Company purchased materials listed at P40, 000; terms 2/15, n/30 on August 1. Assume payments as follows:

• Full payment is made on August 14
• Full payment is made on August 30

Required: Entries to record the purchase and payments assuming:

1. When taken method is used
2. When not taken method is used

3.When offered method is used

An invoice of raw materials A, B and C is received. The invoice totals are A – P25, 000; B – P15, 000; C – P10, 000. The freight charge on this shipment weighing 10, 000 pounds is P1, 500. Shipping weight for the respective materials are 5, 000, 2, 000 and 1, 000 respectively.

Required:

1. Entry to record the purchase of materials and the freight using:

1. Direct charging method
2. Indirect charging method

2. Cost of freight to be entered in the materials ledger cards for A, B and C, if freight is allocated using:

1. Relative peso value method
2. Relative weight method

Answer rating: 100% (QA)

1 On January 10 2013 10 x 400000 40000 Price paid 400000 40000 360000 On January 31 2013 10 x 650000 65000 20 x 650000 130000 30 x 650000 195000 Price ... View the full answer