The Sel Co. sold merchandise to Bun Co. on October 1, 2009 at a list price of P100,000, trade discount of 5% and 10%, FOB destination. Cash discount terms: 3/eom, n/60. Bun Co. paid the freight on October 5, 2009 amounting to P5,000. Because defective merchandise amounting to P3,000 was erroneously delivered, the Sel Co. issued a credit memorandum to Bun Co. on October 7, 2009. Bun Co. paid in full the balance due on October 31, 2009. Required: Journalize the above transactions on the books of Sel Company and Bun Company. Omit explanations.

The Sel Co. sold merchandise to Bun Co. on October 1, 2009 at a list price of P100,000, trade discount of 5% and 10%, FOB destination. Cash discount terms: 3/eom, n/60. Bun Co. paid the freight on October 5, 2009 amounting to P5,000. Because defective merchandise amounting to P3,000 was erroneously delivered, the Sel Co. issued a credit memorandum to Bun Co. on October 7, 2009. Bun Co. paid in full the balance due on October 31, 2009. Required: Journalize the above transactions on the books of Sel Company and Bun Company. Omit explanations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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