Reference no: EM132946279

Macedonia Company, which began operations in 2020, uses perpetual inyentory system. In 2020, it purchased merchandise with a gross inyoice cost of P2,000,000. All purchases were made under terms 2,110, nx'30 FOB destination. It paid freight charge of P100,000. In 2020, it paid for 30% within the discount period. The remaining 20% was paid beyond the discount period. It sold 20% of the merchandise it acquired for cash of P3,600,000. The other 30% remained in inyentory at year-end.

Problem 1: Under the gross method, what is the cost of goods sold?

Problem 2: Under the gross method, what is the amount of ending inventory?

Problem 3: Under the gross method, what is the purchase discount lost?

Problem 4: Under the net method, what is the cost of goods sold?

Problem 5: Under the net method, what is the amount of ending inventory?

Problem 6: Under the net method, what is the purchase discount lost?