Reference no: EM133080719

Question - Activity 1 - Paid 2,000 PHP for freight charges related to the above sale.

Chi Trading had the following transactions in January:

Jan 2 Sold merchandise to a customer and received cash of 80,000 PHP.

Jan 5 Customer returned defective good and a cash refund of 15,000PHP was paid by Chi.

Jan 10 Sold merchandise on account to Dexter Store, 50,000PHP, terms 2/15; n/30.

Jan 17 Sold merchandise on credit to Janice Company, 10,000 PHP, terms 2/10; n/30.

Jan 20 Sales allowance of 2,000 PHP was given to Janice Company because the goods were exposed to rain while in transit.

Jan 24 Collected the full amount due from Dexter Company.

Jan 31 Collected the remaining amount due from Janice Company.

Required - Prepare journal entries to record the above transactions. What is the Net sales for the period?

Activity 2 - The following selected data were taken from the records of Ara Trading:

20X1 20X2

Merchandise Inventory at year-end 10,000 PHP 16,000 PHP

Sales 287,000

Sales Discounts 3,000

Purchases 170,000

Freight in 2,000

Purchase Discounts 4,000

Operating Expenses 64,000

Required - Compute for the following items in 20X2: Net sales , Net Purchases, Cost of sales, Gross profit, Net profit.

Activity 3 - The following were dataq taken from the records of Honesty Store for the year end December 31, 2018.

Merchandise inventory, end 2000,000 PHP

Sales 420,000

Purchases 300,000

Merchandise inventory, beg. 150,000

Sales returns and allowances 5,000

Purchase discounts 20,000

Freight out 3,000

Purchase returns and allowances 11,000

Freight in 2,000

Sales Discounts 4,000

Salaries expense 37,000

Rent expense 21,000

Utilities expense 18,000

Miscellaneous expenses 2,000

Required - Prepare a multi-step income statement for Honesty Store.