Prepare journal entries for the following transactions under the perpetual inventory system. Include adjusting and closing...

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Prepare journal entries for the following transactions under the perpetual inventory system. Include adjusting and closing entries at the end of the month. There is a need to prepare the stock card. Use FIFO. 2019 Dec. 1 Purchased merchandise from ABC Co., P20,000; term, 2/10,n/30. This purchase is equal to 2,500 units. Returned to ABC Co. 200 units with defects. 4 5 Gave partial payment to ABC Co., P12,000. No discount was granted. 9 Sold merchandise for cash, P16,000. Total cost is P10,000. 15 Sold merchandise on account, 2/10,n/30, P10,000; total cost is P5,600. 21 Purchased merchandise from LMN Co, P42,000, 2/10,n/30. Paid also freight of P2,000. This purchase is equal to 4,000 units. 28 Sold merchandise on account, P64,000; total cost is P24,800. 30 Issued credit memo for merchandise returned by the customer last Dec. 28, P1,920; total cost is P1,210. 31 There are 2,100 units on hand as of this date according to physical count. Prepare journal entries for the following transactions under the perpetual inventory system. Include adjusting and closing entries at the end of the month. There is a need to prepare the stock card. Use FIFO. 2019 Dec. 1 Purchased merchandise from ABC Co., P20,000; term, 2/10,n/30. This purchase is equal to 2,500 units. Returned to ABC Co. 200 units with defects. 4 5 Gave partial payment to ABC Co., P12,000. No discount was granted. 9 Sold merchandise for cash, P16,000. Total cost is P10,000. 15 Sold merchandise on account, 2/10,n/30, P10,000; total cost is P5,600. 21 Purchased merchandise from LMN Co, P42,000, 2/10,n/30. Paid also freight of P2,000. This purchase is equal to 4,000 units. 28 Sold merchandise on account, P64,000; total cost is P24,800. 30 Issued credit memo for merchandise returned by the customer last Dec. 28, P1,920; total cost is P1,210. 31 There are 2,100 units on hand as of this date according to physical count.

Answer rating: 100% (QA)

To prepare the journal entries for the given transactions lets go through each transaction step by step 1 December 1 Purchased merchandise from ABC Co ... View the full answer