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Freight Charges
Papi Company sold merchandise on account for P500, 000. The terms are 2/10, n/30. The related
freight charge amount to P10, 000. The account was collected within the discount period.
On June 15, 2019, Hotdog Company sold 100 air conditioning units. The sale price of each unit
is P45, 000.
All of sales are subject to terms 2/10, n30. The entity used the gross method of accounting for
accounts receivable.
On June 14, 2019, Foot long company sold 50 air conditioning units. The sales price for each
unit is P50, 000.
All of sales are subject to terms 2/10, n30. The entity used the net method of accounting for
accounts receivable.
On August 1 of the current year, Ace Company recorded purchases of inventory of P 800,000
and P 1,000,000 under credit terms of 2/15, net 30. The payment due on the P 800,000 purchase
was remitted on August 16. The payment due on the P 1,000,000 purchase was remitted on
August 31. Under the net method and the gross method, these purchases should be included at
what respective amounts in the determination of cost of goods available for sale?