On April 10, 2020, B Trading sold merchandise to EFC Co. Limited for P130,000 under the terms: less: 5%; 2/10, n/30 FOB destination freight collect. EFC Co. Limited paid the freight of P5,000. On April 15, EFC Co. Limited returned to B Trading defective merchandise worth P10,000 (stated at list). EFC Co. Limited paid the account within the discount period amounting to P106,230. B Trading notify. EFC Co. Limited that the amount that they should pay is P106,720. Whose claim do you think is correct B or EFC? Explain

On April 10, 2020, B Trading sold merchandise to EFC Co. Limited for P130,000 under the terms: less: 5%; 2/10, n/30 FOB destination freight collect. EFC Co. Limited paid the freight of P5,000. On April 15, EFC Co. Limited returned to B Trading defective merchandise worth P10,000 (stated at list). EFC Co. Limited paid the account within the discount period amounting to P106,230. B Trading notify. EFC Co. Limited that the amount that they should pay is P106,720. Whose claim do you think is correct B or EFC? Explain

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
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Question 1 and 2 1. On April 10, 2020, B Trading sold merchandise to EFC Co. Limited for P130,000 under the terms: less: 5%; 2/10, n/30 FOB destination freight collect. EFC Co. Limited paid the freight of P5,000. On April 15, EFC Co. Limited returned to B Trading defective merchandise worth P10,000 (stated at list). EFC Co. Limited paid the account within the discount period amounting to P106,230. B Trading notify. EFC Co. Limited that the amount that they should pay is P106,720. Whose claim do you think is correct B or EFC? Explain 2. On April 18, 2020, C Company purchased merchandise from Z Company amounting to P80,000 under the terms; 2/15, n/45 FOB Shipping Point freight Prepaid. Z Company paid freight amounting to P3,000. On April 20, 2020, C Company returned defective goods to Z Company amounting to P6,000. C Company paid the account within the discount period to avail of a discount. The accountant of C Company when he computed the cost of merchandise purchased told the manager…
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