University of Caloocan City: Name: Score: Course/Year & Section: Date
University of Caloocan City: Name: Score: Course/Year & Section: Date
Name: Score:
Course/Year & Section: Date:
Multiple Choice
In addition, beginning merchandise inventory was P55,000 and ending merchandise inventory was P35,000.
7. The entry to record a sale of P7,500 with terms of 2/10, n/30 would include a
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a. Debit to Sales Discounts for P150.
b. Debit to Sales for P7,350.
c. Credit to Accounts Receivable for P7,500.
d. Credit to Sales for P7,500.
8. The collection of a P5,000 account beyond the 2% discount period would result in a
a. Debit to Cash for P4,900.
b. Credit to Accounts Receivable for P5,000.
c. Credit to Cash for P5,000.
d. Debit to Sales Discounts for P100.
9. Goods totaling P50,000 were purchased February 2 with terms of 2/10, n /30. Returns of P10,000 were
made on February 10. What discounts, if any, can be availed of if the invoice was paid on February 12?
a. None.
b. P1,000.
c. P800.
d. P200.
10. The entry to record a payment on a P15,000 account within the 2% discount period would include a
a. Debit to Cash for P15,000.
b. Debit to Accounts Payable for P14,700.
c. Credit to Purchases Discounts for P300.
d. Credit to Accounts Payable for P15,000.
11. A buyer received an invoice for P6,000 dated June 10. If the terms are 2/10, n/30, and the buyer paid the
invoice within the discount period, what amount will the seller receive?
a. P6,000.
b. P5,880.
c. P4,800.
d. P 120.
12. Rivera Company purchased merchandise from Dimatulac Suppliers for P3,600 list price, subject to a trade
discount of 25%. The goods were purchased on terms of 2/10, n/30, FOB Destination. Rivera paid P100
transportation costs. Rivera returned P400 (list price) of the merchandise to Dimatulac and later paid the
amount due within the discount period. The amount paid is
a. P2,254.
b. P2,252.
c. P2,246.
d. P2,352.
13. The December 31, 2010 trial balance for Rueda Company included the following purchases, P40,000;
purchases returns and allowances, P2,000; transportation in, P3,000; ending inventory was P8,000. What
was the cost of goods sold for 2010?
a. P39,000.
b. P33,000.
c. P38,000.
d. None of the above.
14. Assuming that net purchases was P900,000 during the year and that ending merchandise inventory was
P20,000 less than the beginning merchandise inventory of P250,000, how much was cost of goods sold?
a. P1,130,000
b. P 670,000
c. P 920,000
d. P1,170,000
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Problem
The ledger accounts of the EDREL GARCIANO Company for the year ended December 31, 2010 are as follows:
Additional information:
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