1. Cash Discount
Given: Invoice Price (May 1, 2021) - P 10,000
Discount Terms: 2/15, n/30
A. How much payment should be made when paid May 10, 2021? (10,000 x 2% =
200) 10,000 - 200 = P9,800
B. How much payment should be made when paid May 20, 2021? (no discount) =
P10,000
C. How much payment should be made when paid May 30, 2021? (no discount) =
P10,000
2. Cost of Goods Sold Computations
Given: Inventory, beginning - P 328,400
Inventory , end - 410,500
Purchases - 665,300
Purchase Returns & Allowances - 23,670
Purchase Discounts - 19,250
Freight-in - 85,110
D. Compute Net Purchases (665,300 + 23,670 - 19,250
E. Compute the cost of goods sold
3. Additional Information in relation to the number 2 data:
Sales - P 1,925,000
Sales Discount - 33,320
Sales Returns & Allow - 12,550
Total Operating Expenses - 864,160
