PROBLEM:

PERPETUAL INVENTORY SYSTEM

Velazquez Distributors was registered as a single proprietorship with the Department of Trade and
Industry. Knight Velasquez is the owner of company.

April 1 The proprietor invested to his business 40,000.

2 Bought Computer Equipment for 9, 000 cash

2 Bought merchandise on account from Volkskie Store 15,900 terms 2/12, n/30

3 Bought office supplies on cash basis for 500

4 Sold merchandise on account 13,200 FOB destination, terms 2/10, n/30. The cost of
merchandise was 10,000.

5 Paid 100 freight on April 4 sale

6 Received credit memo from Reyes store for merchandise returned, 200

11 Paid Reyes store

Page # 2

13 Collect from April 4 customer

14 Bought merchandise on cash basis for 15,000

15 Salaries paid 1,000

16 Borrowed money from Blake Coleman Bank, promissory note signed for 10,000

17 Received refund from a supplier on cash purchased of April 14, Php 1,000

18 Bought merchandise from Blaize Turman, 14,200 terms 2/10, n/30. FOB

Page #3

20 Paid freight on April 18 purchase, 700

23 Sold merchandise for 16,400. The cost of merchandise of 10,500

26 Bought merchandise for cash, 12,300

27 Paid Blaize Turman on April 18, Php 10,000. No discount allowed on partial payment.

28 P. Fernandez, the proprietor got cash from his business, 2,000

29 Made refund to cash customer for defective merchandise, 1,000

30 Sold merchandise on account, 10,000, n/30. The cost of merchandise sold is 5, 000

30 Paid Advertising 1,000, Utilities 400, Rent 3,500, salaries 1,500.

PROBLEM:

PERIODIC INVENTORY SYSTEM

A business, Montenegro Distributors was registered as a single proprietorship with the Department of
Trade and Industry. Kyo Montenegro is the owner of that company.

April 1 The proprietor invested to his business 50,000.

2 Bought Computer Equipment for 5, 000 cash
2 Bought merchandise on account from Reyes Store 10,000 terms 2/12, n/30
3 Bought office supplies on cash basis for 1,000
4 Sold merchandise on account 14,000 FOB destination, terms 2/10, n/30.
5 Paid freight on April 4 sale
6 Received credit memo from Reyes store for merchandise returned, 300
11 Paid Reyes store
Page #2

13 Collect from April 4 customer

14 Bought merchandise on cash basis for 10,000
15 Salaries paid 1,000
16 Borrowed money from Lander Storm Bank, promissory note signed for 10,000
17 Received refund from a supplier on cash purchased OF April 14, 500
18 Bought merchandise from Phoenix Martinez, 15,000 terms 2/10, n/30. FOB
Page #3

20 Paid freight on April 18 purchase, 700

23 Sold merchandise for 16,000.
26 Bought merchandise for cash, 12,300
27 Paid Phoenix Martinez on April 18, 10,000. No discount allowed on partial payment.
28 K. Montenegro the proprietor got cash from his business, 1,500
29 Made refund to cash customer for defective merchandise, 500
30 Sold merchandise on account, 13,700, n/30.
30 Paid Advertising 500, Utilities 300, Rent 4,000, salaries 2,000.
30 Inventory April 30, 20,000
Note:

1. Please use the Charts of Account the last problem I gave to you.
2. Prepare the 10 cycle of accounting under merchandising concern.

Thank you and see you on November 27, @ 6PM.

Michelle N. Mahinay
Trainer