University of San Jose – Recoletos

BSA STUDY SERIES

Junior Philippine Institute of Accountants 2021 ACCTG 101:
Quiz Bowlers’ Society
[email protected] WEEK 4 NOTES

NOTE: All rights reserved. Reproduction or retransmission of the materials, in whole or in part, in any
manner, without the prior written consent of the Quiz Bowlers’ Society, is a violation of RA 10173.

COVERAGE:

Accounting Cycle of a Merchandising Business:

1. Perpetual Inventory System

2. Periodic Inventory System

INTRODUCTION

There are three basic types of businesses as to product:

1. Service- businesses that offer services to customers.

2. Merchandising- businesses that “buy and sell” ready-made products
3. Manufacturing- businesses that purchase raw materials or partially done goods, process them,
then sell the finished goods to customers

The service type of business has been covered during the past months wherein the Inventory account
is not used since income is earned thru the performance of certain services. Revenue earned is simply
recorded as:

Cash/Accounts Receivable xxx

Service Revenue xxx

The manufacturing type of business will be discussed in detail in your Acctg 102. However, just note
how one of the main distinctions in manufacturing businesses is found in their Inventory Accounts which
uses the following titles:

1. Raw Materials
2. Work In Process (WIP)
3. Finished Goods

In this handout, we will review the merchandising business’s Accounting Cycle and recognize the 2
methods of recording its Inventory:

1. Perpetual Inventory System

2. Periodic Inventory System

1 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

MERCHANDISING BUSINESS’ ACCOUNTING CYCLE

Similar to the lessons discussed in Week 1, the Accounting Cycle of a Merchandising Business follows
these steps:

1. Transaction Analysis
2. Journalizing
3. Posting
4. Preparation of Trial Balance
5. Adjusting Entries
6. Preparation of a Worksheet
7. Preparation of Financial Statements
8. Closing Entries
9. Preparation of Post-Closing Trial Balance
10. Reversing Entries

The main difference will be the usage of Distinct Account Titles depending on the Inventory System
which will also affect the Financial Statements format but yield the same end-figures. Without further
ado, let’s discuss the 2 Systems used by Merchandising Businesses.

PERPETUAL INVENTORY SYSTEM

I. Definition

- This system involves maintenance of detailed inventory records in the accounting system.
Continuous record is maintained on a transaction-by-transaction basis throughout the period. It records
adjustment to inventory balances after every transaction through point-of-sale-inventory systems.

II. Advantages And Disadvantages

Advantages

1. Records the changes in level of stock real time. This continuous stock tracking provides
a firm the ability to find out the inventories that are running low at the right time.

2. Allows big companies with multiple locations to operate at ease. Real time inventory
count of all locations on a screen makes it easy for the central facility to find the total
requirements of the chain and place an order for it.

3. It allows the company to understand the buying pattern of the customer e.g. what
particular time of the day causes the demand to spike, or the condition of the weather is
related to more demand. Based on this, the business can design a supply chain around the
buying habits of the customer.

2 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

Disadvantages

1. The technology necessary for the system (barcodes, scanner, computer software, etc.)
to work can be a huge expense. Updating the new system and training or adding new ones
to work on the system are another expense

2. Recorded inventory may not reflect the actual inventory because physicals aren’t used.
Therefore, whenever errors are entered into the systems, items are stolen or merchandise
isn’t properly scanned, the recorded figures will not match with the actual inventory

What types of merchandising businesses use this?

Businesses with large sales volume and multiple retail outlets (like supermarkets and
pharmacies) need perpetual inventory systems. By using this system, managers are able to
make appropriate timing of purchases with a clear quantity of goods on hand at various locations.

III. Journal Entries

The main difference, in terms of journal entries, between periodic and perpetual inventory
system is that in perpetual inventory system, purchases, returns and discounts, and other costs
associated with the purchase are directly recorded in the Merchandise Inventory account. Under
perpetual inventory system, transactions related to the acquisition of inventory are recorded
accordingly:

a. Merchandise Inventory – is the account on a balance sheet that reflects

the total amount paid for products that are yet to be sold. It has a normal debit balance.

1) To record a purchase

2) To record goods returned to supplier

3) To record payment within discount period for inventory purchased on account

Also, in the perpetual inventory system, there is a continuous update of the Cost
of Goods Sold. Under perpetual inventory system, transactions related to the sale of
inventory are recorded accordingly:

3 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

a. Sales - the proceeds from the sales price of the goods sold. Only sales of merchandise
held for resale are recorded under this account. Under this system, a sale of inventory transfers
the cost of inventory from inventory account to cost of goods sold account. Thus, a journal entry
for Cost of Goods Sold should be done.

b. Cost of Goods Sold – an expense item used to recognize the cost of good being sold in the
same period in which the sale is recognized. The amount recorded in Cost of Goods Sold is the
cost of the inventory and not necessarily the amount recorded in the sales revenue. It has a
normal debit balance.

c. Sales Returns and Allowances - a contra-income account and deducted from gross
sales in income statement. Account used to record returns acknowledged or allowances granted
by the supplier to the buyer. It increases inventory and decreases Cost of Goods Sold.

d. Sales Discounts - a contra-income account and deducted from gross sales in income
statements. It is granted by the seller to the buyer for paying within the discount period.

Under the perpetual inventory system, cost of transporting the goods are recorded accordingly:

a. Freight In / Transportation In – cost of transporting the purchased goods to the

business for resale.

Freight Terms: (sample journal entries are purchases/sales on account)

(1) FOB Destination, Freight Prepaid – seller is legally responsible for the freight charges,
paid by seller. Under this term, the buyer has not yet incurred any freight.

4 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

(2) FOB Destination, Freight Collect – seller is legally responsible for the freight
charges, but paid by buyer.

*Accounts Payable is deducted by the charges paid by the buyer for the benefit of the seller.

(3) FOB Shipping Point, Freight Collect – buyer is legally responsible for the freight charges,
paid by buyer. Sometimes, transportation cost is added in the purchase price but when a
separate payment is made for transportation cost, it is recoded as follows:

(4) FOB Shipping Point, Freight Prepaid – buyer is legally responsible for the freight charges
but paid by seller.

b. Freight Out / Transportation Out / Delivery Expense – cost of transporting the

goods sold to the customers.

(1) FOB Destination, Freight Prepaid – seller is legally responsible for the freight
charges, paid by seller.

(2) FOB Destination, Freight Collect - seller is legally responsible for the freight
charges, but paid by buyer.

*Accounts Receivable is deducted by the charges paid by the buyer for the benefit of the seller.

(3) FOB Shipping Point, Freight Collect – buyer is legally responsible for the freight
charges, paid by buyer.

*No debit to freight out account.

5 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

(4) FOB Shipping Point, Freight Prepaid – buyer is legally responsible for the freight
charges but paid by seller.

IV. Sample Problems

Purchases

1. On April 1, 2020, QBS Co. purchased 15 washing machines at $400 per machine on
account. The supplier allows a discount of 5% if payment is made within 10 days of purchase.
The QBS Co. uses a net price method to record the purchase of inventory.

*Net of discount = 400 x 15 x 95% = 5,700 OR = (400 x 15) – (5% x 6,000) = 5,700

Transportation In

2. On the same day, QBS Co. pays $150 for freight.

Purchase Returns and Allowances

3. On April 07, QBS Co. returned 5 washing machines to the supplier.

The return of washing machines to the supplier decreases the cost of inventory and accounts
payable. The following entry would be made to record this decrease:

1,900 because the inventory was recorded at net of discount

6 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

Purchase Discounts

4. On April 9, QBS sent the payment via an online banking system and took advantage of
the discount offered by the supplier.

As the payment is made within 10 days, the QBS Co. is entitled to receive a discount. The
following entry would be made to record the payment:

*5,700 – 1,900 = 3,800

Sales

1. On April 15, QBS Co. sold 4 washing machines at $650 per machine. The QBS Co. does
not allow any discount to customers.

The sale of 4 washing machines transfers the cost of inventory from inventory account to cost
of goods sold account. Two journal entries would be made; one for the sale of 4 washing
machines and one for the transfer of cost from inventory account to cost of goods sold account:

*Cost of 4 machines sold:

[($380 × 10 machines) + $150 expenses]/10 = $395 per machine

$395 × 4 machines = $1,580

7 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

V. Sample FS

8 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

PERIODIC INVENTORY SYSTEM

I. Definition

This system allows a company to track its beginning and ending inventory within an accounting
period, but it does not track the inventory on a daily or per-sale basis. This is more appropriate for
businesses selling inexpensive goods or different low-priced items. The sales transactions
resulting from the sale of these items are voluminous. As such, it is not feasible to be tracing from the
records the cost of each small item every time a sale is consummated. For example, a supermarket
cannot trace every bottle of shampoo sold. The inventory is counted and the cost of goods sold is
determined at the end of the period.

II. Advantages and Disadvantages

Periodic systems work well for some types of business, some individuals believe that this system
is the right way to go for their businesses and some argue that this system is a massive waste of time.
Before you make a decision in using this system, one should consider first it’s advantages and
disadvantages to avoid wasting time and money.

Advantages

1. It is easy to implement since it has simple record-keeping and does not require greater skills
or experience.
2. Ideal for smaller businesses or those selling goods with different low-priced items.
3. It has a lower start-up cost because it only requires a few materials to be properly conducted.
Disadvantages

1. Chance of fraud and forgery lies because continuous control over merchandise is absent.
2. It can disrupt business hours and increase overtime costs because it requires the dedication
of the employees to the task of manually counting every single item.
3. The process is slow because it needs to wait until the physical check is finished.

It is clearly not lacking in benefits particularly when the stakes are small. However, for
larger businesses, some challenging factors can begin to plague the integrity of the system.

Under the periodic system, transactions related to the acquisition of inventory are
recorded accordingly:

a. Purchases – a temporary account, used for merchandise purchased for resale. Its sole
purpose is to accumulate the total cost of merchandise purchased during an accounting period.

b. Purchase Returns and Allowances – a contra account and is deducted from purchases
in the income statement. Account used to record returns acknowledged or allowances granted
by the supplier.

9 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

c. Purchase Discounts – is a contra account that is deducted from purchases in the income
statement. It is granted by the supplier to the buyer for paying within the discount period.
Remember that only cash discounts are recorded under this account, the trade discount is not
shown or recorded in both the buyer’s and seller’s book.

Two types of discounts:

(1) Trade Discounts - a deduction from the list price or catalogue price granted to
buyers to encourage purchase of big quantities.

(2) Cash Discounts - a deduction from the selling price granted to buyers to
encourage prompt payment.

Example:

Under the periodic system, transactions related to sale of inventory are recorded accordingly:

a. Sales – the proceeds from the sales price of the goods sold. Only sales of merchandise
held for resale are recorded under this account.

b. Sales Return and Allowances – a contra-income account and deducted from gross
sales in income statement. Account used to record returns acknowledged or allowances
granted by the supplier to the buyer.

c. Sales Discounts - a contra-income account and deducted from gross sales in income
statements. It is granted by the seller to the buyer for paying within the discount period.

10 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

Under the periodic system, cost of transporting the goods are recorded accordingly:

a. Freight In / Transportation In – a transportation cost shouldered by the buyer.

Freight Terms: (sample journal entries are purchases/sales on account)

(1) FOB Destination, Freight Prepaid – seller is legally responsible for the freight
charges, paid by seller

*No debit to freight in account.

(2) FOB Shipping Point, Freight Collect – buyer is legally responsible for the freight
charges, paid by buyer

(3) FOB Destination, Freight Collect – seller is legally responsible for the freight charges,
but paid by buyer

*Accounts Payable is deducted by the charges paid by the buyer for the benefit of the
seller.

(4) FOB Shipping Point, Freight Prepaid – buyer is legally responsible for the freight
charges but paid by seller

b. Freight Out / Transportation Out – a transportation cost shouldered by the seller.

(1) FOB Destination, Freight Prepaid – seller is legally responsible for the freight
charges, paid by seller

(2) FOB Shipping Point, Freight Collect – buyer is legally responsible for the freight
charges, paid by buyer

*No debit to freight out account.

11 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

(3) FOB Destination, Freight Collect – seller is legally responsible for the freight charges,
but paid by buyer

*Accounts Receivable is deducted by the charges paid by the buyer for the benefit of the
seller.

(4) FOB Shipping Point, Freight Prepaid – buyer is legally responsible for the freight
charges but paid by seller

IV. Sample Problems

Acquisition Inventory (Buyer’s books)

Purchases

1. On November 20, QBS Co. purchased from BTS Co. merchandise on account worth P130,000;
terms were 2/10, n/30.

Purchase Returns and Allowances

2. QBS Co. returned defective merchandise to BTS Co. worth P50,000.

Purchase Discounts

3. QBS Co. paid for the merchandise purchased on November 20.

Note: Discount is given because the payment has been made within 10 days from the sales invoice date
but no discount will be given if payment is made beyond 10 days. Net amount is payable within 30 days.

12 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

Transportation In
4. On November 29, QBS Co. made purchases totaling P20,000 FOB destination, freight
prepaid. Transportation costs amounted to P2,000.

Note: There is no debit to freight in/transportation in account since the shipping term provided that the
seller should shoulder the transportation costs. In addition, the seller prepaid the freight.

5. On November 29, QBS Co. made purchases totaling P20,000 FOB shipping point, freight
collect. Transportation costs amounted to P2,000.

Note: There is a debit to freight in account because under FOB shipping point, freight collect, the buyer
is legally responsible for the transportation costs.

6. On November 29, QBS Co. made purchases totaling P20,000 FOB destination, freight collect.
Transportation costs amounted to P2,000.

Note: Under FOB destination, freight collect, the buyer pays the freight charges upon delivery of the
goods therefore accounts payable is decreased by the transportation charges paid by the buyer for the
benefit of the seller.

7. On November 29, QBS Co. made purchases totaling P20,000 FOB shipping point, freight
prepaid. Transportation costs amounted to P2,000.

Note: Under FOB shipping point, freight prepaid, the seller adds transportation costs to the buyer invoice
therefore accounts payable increases by the transportation charges paid by the buyer.

13 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

Sale of Inventory (Seller’s books)

Sales

1. On November 20, BTS Co. sold merchandise on account worth P130,000 to QBS Co.; terms
were 2/10, n/30.

Sales Returns and Allowances

2. BTS Co. received defective merchandise worth P50,000 from QBS Co.

3. BTS Co. received payment from QBS Co. for the merchandise sold on account.

Note: Discount is given to the buyer (QBS Co.) because the payment has been made within 10 days
from November 20 and no discount will be given if the payment is made beyond 10 days. Net amount
is payable within 30 days.

Transportation Out

1. On November 29, BTS Co. sold merchandise totaling P20,000 FOB destination, freight
prepaid. The transportation costs amounted to P2,000.

Note: The seller is legally responsible for the transportation costs.

14 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

2. On November 29, BTS Co. sold merchandise totaling P20,000 FOB shipping point, freight
collect. The transportation costs amounted to P2,000.

Note: There is no debit to freight/transportation out account since the shipping term provided that the
buyer should shoulder the transportation costs.

3. On November 29, BTS Co. sold merchandise totaling P20,000 FOB destination, freight
collect. The transportation costs amounted to P2,000.

Note: Accounts receivable is decreased by the transportation charges paid by the buyer for the benefit
of the seller.

4. On November 29, BTS Co. sold merchandise totaling P20,000 FOB shipping point, freight
prepaid. The transportation costs amounted to P2,000.

Note: Under FOB shipping point, freight prepaid, the buyer is legally responsible for the freight charges
but already paid by the seller.

15 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

V. Sample format for Net Sales and Cost of Sales

16 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

EXERCISES:

1. Merchandise is purchased on account from a supplier, List price $15,000, trade discount 30%, terms
2/10, n/30 FOB shipping point with transportation costs of $200 paid by the seller, and added to the
invoice. The purchaser returned $1,000 of the merchandise prior to payment. The invoice was paid
within the discount period; what is the amount of cash paid by the buyer?

a. $7,990

b. $9,490

c. $11,470

d. $9,510

2. Merchandise is sold on account to a customer for $15,000, terms 2/10, n/30, FOB destination. The
merchandise cost $10,000. The seller paid transportation costs of $600. The buyer returned some of
the merchandise and the seller prior to receiving payment issued a credit memorandum for $1,500 for
returned merchandise. The returned merchandise cost $1,000. What is the journal entry recorded by
the seller for the sale of the merchandise?

a. A debit of Transportation In for 600

b. A debit of Cost of Goods Sold for 15,000
c. A credit to Sales for 14,700
d. A credit to Sales for 15,000

3. In the preceding item, what is the journal entry recorded by the seller for the return of the
merchandise?

a. A debit to Merchandise Inventory for 1,500

b. A debit to Cost of Goods Sold for 1,000
c. A credit to Accounts Receivable for 1,500
d. A credit to Sales Returns and Allowances for 1,000

4. Statement I. Sales Discounts is shown as a reduction of cost of goods sold in the income statement.

Statement II. The contra-revenue accounts, Purchase Returns and Allowances and Purchase
Discounts, should be closed by crediting these accounts and debiting Income Summary for each account.

a. Only Statement I is true

b. Only Statement II is true
c. Both Statements are true
d. Neither of the Statements is true

5. Statement I. Under the perpetual inventory system, two entries are required when goods are sold.

Statement II. When using a perpetual inventory system, the Purchases account is debited when
merchandise is acquired.

a. Only Statement I is true

b. Only Statement II is true
c. Both Statements are true
d. Neither of the Statements is true

17 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

6. In a perpetual inventory system, there are more than one entries that are normally made to record
each sales transaction. The purpose of these entries are best described as follows:

a. One entry recognizes the sales revenue and the other recognizes the cost of goods sold.
b. One entry records the purchase of merchandise and the other records the sale.
c. One entry records the cost of goods sold and the other reduces the balance in the inventory
account.
d. One entry updates the subsidiary ledger and the other updates the general ledger.

7. The journal entry to record a return of merchandise purchased on account after perpetual inventory
system would be:

a. Accounts Payable

Purchase Returns and Allowances

b. Purchase Returns and Allowances

Accounts Payable

c. Accounts Payable

Inventory

d. Inventory

Accounts Payable

8. In perpetual inventory system, the Cost of Goods Sold is recorded

a. On a monthly basis
b. On a daily basis
c. with each sale
d. On annual basis

9. The collection of $2,500 account after the 2% discount period will result in a:

a. Debit cash $2,450

b. Debit accounts recievable 2,500
c. Credit sales discount $50
d. Debit cash 2,500

10. On November 30, 2021, Labanlung Company has cash sales of $10,000 from merchandise having
a cost of $3,000. Under perpetual inventory system, the entries to record cash sales will include:

a. Credit Cost of goods sold $10,000

b. Debit Cost of goods sold $3,000
c. Debit Sales $10,000
d. Credit Sales $3,000

11. Suppose an entity purchases P100,000 goods on credit. The journal entry should be:

Account to be debited Account to be credited

a. Purchases Cash
b. Accounts Payable Purchases
c. Purchases Accounts Payable
d. Accounts Receivable Accounts Payable

18 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

12. Confidentpa Co. purchased P40,000 merchandise from Cassaionoi Co. with terms 3/10, n/30. How
much discount is Confidentpa Co. entitled to take if it paid within the allowed discount period of 10 days?

a. P1,500
b. P500
c. P1,200
d. P3,000

13. When the seller advances the transportation costs and the terms of sale are FOB shipping point, the
seller records the payment of the transportation costs by debiting

a. Accounts payable
b. Accounts receivable
c. Sales
d. Transportation in

14. Cassaionoi Company receives an invoice for P20,000 dated November 10. If the terms are 2/10,
n/30, and Cassaionoi Company pays the invoice within the discounted period, what amount will the
seller receive?

a. P19,600
b. P20,000
c. P400
d. P20,400

15. FOB Destination means

a. The ownership of the goods in transferred upon shipment of the goods and the buyer is the
owner of the goods in transit

b. The seller must bear all expense and risk involved in delivering the goods to the dock next to
the vessel on which they are to be shipped. The buyer bears the cost of loading and of shipment,
thus title passes when the carrier takes possession of the goods

c. The ownership of goods is transferred upon receipt of the goods by the buyer at the point of
destination and the seller is the owner of the goods in transit.

d. The freight charge is paid by the seller but chargeable to the buyer

16. Which of the following describes the agreement that the buyer will pay for the freight charge but is
not legally responsible for the same?

a. FOB destination, freight prepaid

b. FOB destination, freight collect

c. FOB shipping point, freight prepaid

d. FOB shipping point, freight collect

19 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

17. A credit sale of P1,200 is made on November 7, terms 2/10, n/30, on which a return of P150 is
granted on November 10. What amount is received as payment in full on November 13?

a. P1,176 c. P1,029

b. P1,050 d. P1,200

18. Laban Company sells merchandise on account for P5,000 to Padayon Company with credit terms of
2/10, n/30. Padayon Company returns P750 of merchandise that was damaged, along with a check to
settle the account within the discount period. What entry does Laban Company make upon receipt of
the check?

a. Cash 4,250

Accounts Receivable 4,250

b. Cash 4,900

Sales Discount 100

Accounts Receivable 5,000

c. Cash 4,165

Sales Discount 835

Sales Return and Allowances 750

Accounts Receivable 4250

d. Cash 4,165

Sales Return and Allowances 750

Sales Discounts 85

Accounts Receivable 5,000

20 | Page https://www.facebook.com/Quiz-Bowlers-Society
QUIZ BOWLERS’ SOCIETY LECTURE NOTES

19. PasarNi Company reported the following balances at December 31, 2020

Sales P11,760

Sales Return and Allowances P360

Sales Discount P230

Cost of Sales P3,810

The Net Sales and Gross Profit are

a. NS: P11,710 and GP: P7,900

b. NS: P11,179 and GP: P7,369

c. NS: P11,170 and GP: P7,306

d. NS: P11,170 and GP: P7,360

20. Detailed record of goods held for resale are not maintained under a

a. Periodic Inventory

b. Perpetual Inventory

c. Double Entry Accounting System

d. Single Entry Accounting System

Prepared by:

Augusto, Joan Rose

Castillo, Clark Peter
Estelloso, Devine Grace
Tabanao, Kate Rose
Tingcoy, Nina

21 | Page https://www.facebook.com/Quiz-Bowlers-Society