Solution-How will the cash purchase of merchandise invoice

How will the cash purchase of merchandise invoice price

Assignment Help Accounting Basics

Reference no: EM132822548

Problem 1: BSA Company's monthly net profit before taxes is P250,000, representing 10% of net sales. How will the cash purchase of merchandise for P500,000 invoice price be recorded in the purchase journal, freight terms FOB destination, freight collect P20,000, 2/7, n/30? Assume all parties involved are VAT registered and BSA Company uses voucher system.

Option 1: None
Option 2: Debit Merchandise Inventory P417,500; Debit Input VAT P52,500, Credit Accounts Payable P470,000.
Option 3: Debit Merchandise Inventory, P437,500; Debit Input VAT P52,500; Credit Accounts Payable P490,000.
Option 4: Debit Merchandise Inventory P455,357.14; Debit Input VAT P54,642.86; Credit Accounts Payable P510,000.

Reference no: EM132822548

Questions Cloud

What is the role of politics during the pandemic : The 2019-2020 coronavirus pandemic is an ongoing disease that has devastated many countries all over the world. The outbreak was identified in Wuhan.

What is amount of uncollectible accounts expense for year : Collections on accounts totaled P4,836,000; accounts P150,000 were written off. What is the amount of uncollectible accounts expense for the year?

Describe effect of perceptions of economic stability : Watch the NBC Learn video clip Some U.S. Businesses Profit from a falling Dollar regarding the depreciation of the U.S. dollar during the last recession.

Importance of a project charter : You have been assigned as the project manager to oversee a project for your organization for a six-month

How will the cash purchase of merchandise invoice price : How will the cash purchase of merchandise for P500,000 invoice price be recorded in the purchase journal, freight terms FOB destination

Evaluate the statement by quinn and colleagues : Evaluate the following statement by Quinn and colleagues using the Competing Values Framework (CVF) as a theoretical frame of reference:

Money and resources in the staffing process : What problems can result when an organization "cuts corners" to save money and resources in the Staffing process?

Which of the pertains to notes receivable : In financing of receivables, which of the following pertains to notes receivable? The lower the net credit sales, the lower accounts receivable turnover ratio.

What layer is the rewarewa found in : Describe the plant that starts growing at the top of the rewarewa. What is it doing and why? What kind of adaptations does it have? What is this relationship

User Account

All Pages

How will the cash purchase of merchandise invoice price

Reference no: EM132822548

Reference no: EM132822548

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT