FDNACCT 06 · Merchandising
Conventions
Amounts are Philippine pesos (₱). Use accrual accounting and periodic inventory unless explicitly stated. Interest uses annual rates with days/360 or months/12; maturity dates use actual calendar days, excluding issue date. Cash-discount cases explicitly state the course original-balance convention. Numeric answers omit currency symbols; round monetary answers to two decimal places when needed. Each question supplies its own complete facts and is independent. No VAT or period-end adjustments apply unless stated.
Questions
01Complete the invoice price after successive trade discounts.
Problem
All amounts are Philippine pesos (₱). Determine the invoice price using the stated successive trade discounts.
| Item | Value |
|---|---|
| List price | 36,000 |
| First trade discount | 10% |
| Second trade discount | 5% |
| Invoice price | ? |
02Complete net sales.
Problem
All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:
| Account | Amount |
|---|---|
| Sales | 140,000 |
| Sales returns and allowances | 7,000 |
| Sales discounts | 5,000 |
| Purchases | 85,000 |
| Purchase returns and allowances | 4,000 |
| Purchase discounts | 3,500 |
| Freight in | 12,000 |
| Beginning inventory | 20,000 |
| Ending inventory | 16,700 |
| Net sales | ? |
03Complete cost of sales.
Problem
All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:
| Account | Amount |
|---|---|
| Sales | 140,000 |
| Sales returns and allowances | 7,000 |
| Sales discounts | 5,000 |
| Purchases | 85,000 |
| Purchase returns and allowances | 4,000 |
| Purchase discounts | 3,500 |
| Freight in | 12,000 |
| Beginning inventory | 20,000 |
| Ending inventory | 16,700 |
| Cost of sales | ? |
04Complete gross profit.
Problem
All amounts are Philippine pesos (₱). Use the periodic inventory system. The period’s balances are:
| Account | Amount |
|---|---|
| Sales | 140,000 |
| Sales returns and allowances | 7,000 |
| Sales discounts | 5,000 |
| Purchases | 85,000 |
| Purchase returns and allowances | 4,000 |
| Purchase discounts | 3,500 |
| Freight in | 12,000 |
| Beginning inventory | 20,000 |
| Ending inventory | 16,700 |
| Gross profit | ? |
05Which account does the periodic-inventory buyer debit for the freight payment?
Problem
All amounts are Philippine pesos (₱). A buyer using periodic inventory buys merchandise on FOB shipping point, freight collect terms. It pays 900 cash to the carrier, bears the delivery cost, and records it as part of purchase cost.
06What cash discount applies under the stated course formula?
Problem
All amounts are Philippine pesos (₱). FDN Trading uses periodic inventory and settles the supplier account within the discount period. Apply the course formula: the cash discount is based on original payable after downpayment and returns; prior partial payments are deducted separately in final settlement. Freight is paid separately and excluded from the supplier-account discount base.
| Item | Value |
|---|---|
| List price | 36,000 |
| Successive trade discounts | 10% then 5% |
| Cash downpayment | 10,000 |
| Credit terms | 2/10, n/30 |
| Returned invoiced goods | 1,000 |
| Prior partial payment | 5,000 |
| Freight, FOB shipping point, collect | 900 |
| Cash discount | ? |
07What final cash payment settles the supplier account?
Problem
All amounts are Philippine pesos (₱). FDN Trading uses periodic inventory and settles the supplier account within the discount period. Apply the course formula: the cash discount is based on original payable after downpayment and returns; prior partial payments are deducted separately in final settlement. Freight is paid separately and excluded from the supplier-account discount base.
| Item | Value |
|---|---|
| List price | 36,000 |
| Successive trade discounts | 10% then 5% |
| Cash downpayment | 10,000 |
| Credit terms | 2/10, n/30 |
| Returned invoiced goods | 1,000 |
| Prior partial payment | 5,000 |
| Freight, FOB shipping point, collect | 900 |
| Final cash payment | ? |
08Identify the journal used for repeated credit sales.
Problem
A merchandising business uses special journals for repeated transactions. Its customers buy finished goods on credit; identify the journal for those repeated credit sales.
09Enter the purchase discount.
Problem
Periodic buyer; no VAT. List ₱240,000 less 10% then 5%; downpayment 25% of invoice; terms 2/10, n/30. Invoice-value return ₱3,900. Separately pay ₱4,200 FOB shipping-point collect freight. Prior supplier payment ₱36,000 with no discount previously recognized. Final settlement qualifies for 2%. Course discount base: original payable after down/returns, before partial payment, excluding freight.
10Enter final supplier cash payment.
Problem
Periodic buyer; no VAT. List ₱240,000 less 10% then 5%; downpayment 25% of invoice; terms 2/10, n/30. Invoice-value return ₱3,900. Separately pay ₱4,200 FOB shipping-point collect freight. Prior supplier payment ₱36,000 with no discount previously recognized. Final settlement qualifies for 2%. Course discount base: original payable after down/returns, before partial payment, excluding freight.
11Enter net cost of this purchase.
Problem
Periodic buyer; no VAT. List ₱240,000 less 10% then 5%; downpayment 25% of invoice; terms 2/10, n/30. Invoice-value return ₱3,900. Separately pay ₱4,200 FOB shipping-point collect freight. Prior supplier payment ₱36,000 with no discount previously recognized. Final settlement qualifies for 2%. Course discount base: original payable after down/returns, before partial payment, excluding freight.
12Enter final cash collected by the seller.
Problem
Sale Sept 4, 2026: list ₱160,000 less 10%; terms 3/5, 1/15, n/30. Customer pays ₱1,800 seller-borne FOB destination collect freight, returns ₱4,000 invoiced goods and pays ₱35,000 partially without discount. Settles Sept 19. Use course discount base invoice less returns, before partial payment and excluding freight reimbursement.
13Complete gross profit under periodic inventory.
Problem
Use all raw facts in the table. Amounts are pesos unless a row specifies a rate, fraction or term. Apply the stated account, period and viewpoint; no other transactions apply.
| Item | Value |
|---|---|
| Sales | 720000 |
| Purchases | 380000 |
| Freight out | 12000 |
| Beginning inventory | 95000 |
| Sales discounts | 11000 |
| Purchase returns and allowances | 17000 |
| Salaries expense | 54000 |
| Freight in | 13000 |
| Sales returns and allowances | 24000 |
| Ending inventory | 88000 |
| Purchase discounts | 9000 |
| Gross profit | ? |
14Complete cost of sales.
Problem
Use all raw facts in the table. Amounts are pesos unless a row specifies a rate, fraction or term. Apply the stated account, period and viewpoint; no other transactions apply.
| Item | Value |
|---|---|
| Beginning inventory | 82000 |
| Ending inventory | 63000 |
| Net cost of purchases | 345000 |
| Purchase discounts | 7000 |
| Purchase returns | 10000 |
| Freight in | 12000 |
| Freight out | 9000 |
| Cost of sales | ? |
15Name the account the buyer debits for seller-paid, reimbursable freight.
Problem
Buyer uses periodic inventory. FOB shipping point, prepaid; seller pays ₱2,700 to carrier and buyer owes reimbursement.
16Enter equivalent single trade-discount percentage, as a number (for example 12.5).
Problem
Successive trade discounts are 10%, then 5%. No cash-settlement discount is involved.