TRITON DEPARTMENT STORE Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $ 8,200 Accounts Receivable 84,600 Merchandise Inventory (beginning) 37,800 Office Supplies 850 Furniture 86,000 Accumulated Depreciation-Furniture $ 18,500 Accounts Payable 29,400 Salaries Payable 2,300 Unearned Revenue 14,900 Notes Payable, long-term 36,000 Common Stock 60,000 Retained Earnings 22,850 Dividends 88,600 Sales Revenue 374,000 Purchases 295,000 Purchase Returns and Allowances 109,000 Purchase Discounts 6,400 Freight In 300 Selling Expense 41,700 Administrative Expense 26,600 Interest Expense 3,700 Total $ 673,350 $ 673,350

1. The Pattasar Electric Appliances company uses perpetual inventory system and first-in, first-out (FIFO) method to calculate cost of goods sold and for the ending inventory valuation. The company has made the following purchases and sales during the month of February 2018. Feb. 01: Inventory at the beginning of the month; 24 units @ $1,000 per unit. Feb. 04: Sales: 16 units. Feb. 07: Purchases; 12 units @ $1,020 per unit. Feb. 10: Purchases; 10 units @ $1,050 per unit. Feb. 14: Sales; 16 units. Feb. 23: Sales; 12 units. During the month, all sales have been made @ $1600 per unit. Instruction 1. Compute the cost of goods sold and the cost of inventory in hand at the end of the month of February 2018. 2. Prepare journal entries to record the above transactions under perpetual inventory system.

Prepare the journal entries for the following transactions using the following Inventory methods: 1. Periodic 2. Perpetual Problem: The transactions for the month of June. Use markup on sales of 20% for profit. June 1 Purchased merchandise from Ariva Marketing, list price, P 35,000, trade discount 20% terms: 2/10, n/30, FOB Shipping point, freight prepaid, 1200. June 3 Purchased merchandise from Montage Trading P17,500, terms 2/10, n/30, FOB destination. June 5 Sold merchandise on credit to Alice Enterprise, P6,250, terms: 2/10, n/30, FOB shipping point, freight prepaid, P450. Mark up on sales 20%. June 7 Returned defective merchandise to Montage Trading P1,500. June 9 Sold merchandise to Town Sales Company, P9,750, terms: 1/10, n/30, FOB destination. June 9 Paid freight costs on shipment to Towm Sales Company, P550. June 11 Paid Ariva Marketing, the invoice of June 1 less discount. June 11 Received defective merchandise returned by Town Sales Co., P800. June 11 Paid Montage Trading…

Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns.