Treat the following Financial Transactions as independent scenarios: 1. The Buyer and Seller agreed on the...

 

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Treat the following Financial Transactions as independent scenarios: 1. The Buyer and Seller agreed on the term FOB Shipping Point, Freight Collect for the freight cost of $12,500 for the sales transactions of $325,000 on June 22, 2019. The Buyer paid in full on July 2 for the credit term 1/10, n/15. 2. The Seller sold merchandise on March 26, 2019 with the list price of $500,000 at trade discount of 10%, 5%. The terms of shipment is FOB - Shipping Point, Freight Prepaid with the freight amounting to $15,000. The Buyer's credit term is 3/EOM, n/60. The Buyer paid all the accounts on March 31, 2019. 3. On January 28, 2019 the Buyer purchased $450,000 worth of inventory at 10% trade discount with a term of 2/10, n/30. The freight cost is P25,000 on FOB - Shipping Point, Freight Collect. The Seller collected in full what is due from the Buyer on February 08, 2019. 4. The term of shipment on the sale of goods on September 28, 2019 for $1,500,000 is FOB Destination, Freight Collect with freight cost of $225,000. The Seller gave a trade discount of 15%, 5% with a credit term of 3/10, 1/15, n/30. The Seller collected on October 10, 2019. 5. On September 29, 2019, the Buyer bought $300,000 of inventory at 5% trade discount with the shipping term of FOB - Destination, Freight Prepaid. The shipping cost is $45,000. The Seller gave a credit term of 2/15, n/45. The Buyer paid in full on October 13, 2019. Prepare the journal entries on the Buyer and Seller books for the following: a. Purchase and sales transactions. b. Freight transactions. c. Payment of the transactions. Treat the following Financial Transactions as independent scenarios: 1. The Buyer and Seller agreed on the term FOB Shipping Point, Freight Collect for the freight cost of $12,500 for the sales transactions of $325,000 on June 22, 2019. The Buyer paid in full on July 2 for the credit term 1/10, n/15. 2. The Seller sold merchandise on March 26, 2019 with the list price of $500,000 at trade discount of 10%, 5%. The terms of shipment is FOB - Shipping Point, Freight Prepaid with the freight amounting to $15,000. The Buyer's credit term is 3/EOM, n/60. The Buyer paid all the accounts on March 31, 2019. 3. On January 28, 2019 the Buyer purchased $450,000 worth of inventory at 10% trade discount with a term of 2/10, n/30. The freight cost is P25,000 on FOB - Shipping Point, Freight Collect. The Seller collected in full what is due from the Buyer on February 08, 2019. 4. The term of shipment on the sale of goods on September 28, 2019 for $1,500,000 is FOB Destination, Freight Collect with freight cost of $225,000. The Seller gave a trade discount of 15%, 5% with a credit term of 3/10, 1/15, n/30. The Seller collected on October 10, 2019. 5. On September 29, 2019, the Buyer bought $300,000 of inventory at 5% trade discount with the shipping term of FOB - Destination, Freight Prepaid. The shipping cost is $45,000. The Seller gave a credit term of 2/15, n/45. The Buyer paid in full on October 13, 2019. Prepare the journal entries on the Buyer and Seller books for the following: a. Purchase and sales transactions. b. Freight transactions. c. Payment of the transactions.

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a Journal entries on the Buyers books 1 Purchase Transaction Date September 29 2019 Inventory or Pur... View the full answer