NEED COMPLETE SOLUTION AND ANSWER
Prepare the journal entries for each transaction.
Post to the ledger and prepare a trial balance.
Ashly Distributors completed the following merchandising transactions for the month of May 2012. As of May 1, the books of account showed cash of P50,000 and Ashly Capital of P50,000
.May 2 Purchased merchandise on account from Wendy Supply Co. P10,000 terms, 2/10,n/30
3 Sold merchandise for P4,500 terms P500 down balance 2/10,n/30.
4 Paid P500 cash for freight on May 3 sales.
5 Received credit from Wendy for merchandise returned.P800.
6 Made partial payment to Wendy P5,000.
7 Received partial collection from customer on account date May 3 P3,000
8 Paid Wendy’s account in full.
9 Received collections in full from customer billed on May 3
10 Cash purchases of merchandise P6,800
11 Received refund from supplier for cash purchase of April 16 P500
12 Purchased merchandise from KFC Enterprise, P14,000 terms 2/10,n/30
13 Paid freight on May 12 purchases P700.
14 Sold merchandise P3,600 terms COD
15 Purchased merchandise for cash P2,750
16 Made partial payment to KFC for P6,000
17 Paid KFC in full
18 Made refunds to customers for defective goods sold, P500.
19 Sold merchandise on account, P12,950, terms 15% down, balance 2/5, 5/10, n/15 20
20 Purchased merchandise in cash P20,000, received trade discounts of 15,10,5.
21 Collected in full sales made on May 19.
22 Purchased merchandise on account P4,000, terms eom.
23 Purchased goods on account P6,000, terms 2/5, ROG
24 Sold merchandise on account, P20,000, terms 20% down, balance 5/eom.
25 Received goods purchased on the 23rd. of May.
29 Paid in full the purchases made on May 23.
30 Sold merchandise in cash P5,000.
31 Sold merchandise on account, P8,000, down 25%, balance, terms 1/5,2/15,5/25, n/60