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On March 1, 2019, Philip Company bought merchandise from Winston Company for P 89,600 (VAT inclusive). Terms 3/10, 2/15, n/30. FOB shipping point, freight prepaid. The cost of the freight was P 1,680 (VAT inclusive). On March 2, 2019, Winston issued a credit memorandum for P 3,500 (VAT exclusive). Philip Company paid the amount due on March 15, 2019.
Problem 1: The amount of Purchases to be recorded by Philip Company will be?
Problem 2: the amount due from Philip Company on March 15, 2019 will be?
Problem 3: the amount of cash discount to be recorded by Winston Company will be?
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