Reference no: EM132738321
Question: A) Llamas Co. sold goods with an invoice price of P5,400,000 on January 1, 2020. Trade discounts were 20% and 10%. Terms were 5/15, n/45. Customer made a down payment equal to 30% of the list price. The remaining balance was paid on January 31, 2020. Llamas uses the net method.
- How much were total trade discounts?
- How much is recorded by Llamas Co. to Sales on January 1, 2020?
- How much accounts receivable was recorded on January 1, 2020?
- How much was recorded to Purchase Discounts Lost on January 31, 2020?
B.) De Leon Co. sold goods with a list price of P6,172,000 on June 1, 2020. Trade discounts were 10% and 5%. Terms were 5/10, n/30. Customer paid P3,000,000 on June 5, 2020, and the remaining balance on June 10, 2020.
- How much trade discounts were recorded?
- How much cash will be received by De Leon Co. on June 10, 2020?
C) Paeng E. Kadate was able to sell his land for P15,000,000. He asks you, his accountant, to journalize for him. You skim through his balance sheet and find out that, under PPE, Land has an amount of P10,000,000. You further search through the accounts and find out that the accumulated depreciation has a balance of P7,500,000.
- How much gain/loss on sale of Land will you record? Enclose with parenthesis if loss.
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How much were total trade discounts
: Llamas Co. sold goods with an invoice price of P5,400,000 on January 1, 2020. Trade discounts were 20% and 10%. Terms were 5/15, n/45. Customer made a down.
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