Problem
I. On December 1, 2009, X Co. bought merchandise from Y Co. costing P50,000, terms 2/10, n/30, FOB shipping point. Y Co. prepaid the freight of P6,000 on December 2, 2009. On December 4, Y Co. issued a credit memorandum for damaged merchandise returned by X Co. amounting to P2,000. X Co. paid in full the balance due on December 11, 2009.
Task
• Journalize the above transactions on the books of X Co. and Y Co.
II. 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.
Task
• Journalize the above transactions on the books of Sel Company and Bun Company. Omit explanations.