Reference no: EM132536939

Problem 1 - Assuming that net purchases was P1,000,000 during the year and the ending merchandise inventory was P20,000 less than the beginning merchandise inventory of P250,000, how much is the cost of goods sold?

Problem 2 - Goods totaling P50,000 were purchased on February 2 with terms of 3/10, n/30. Returns of P10,000 were made of February 10. The amount of cash to be paid on February 12 is:

Problem 3 - A P6,000 purchases on account was made. The entry to record the payment on account after the expiration of 2% discount is?

Problem 4 - Under the perpetual inventory system, what is the entry to record a purchase of P60,000, 2/10, n/30?

Problem 5 - Olive purchased merchandise from San Jose for P3,600 list price, subject to trade discount of 25%. The goods were purchased on terms of 2/10, n/30, FOB destination. Olive paid P100 transportation cost and returned P400 (list price) of the merchandise to San Jose and later paid the amount due within the discount period. What is the amount paid by Olive?