Bookkeeping NCII Accounting for merchandising business

1. Module 2
Accounting for Merchandising Business
In merchandising business, net sales arise from the sale of goods while cost of goods sold represents the
cost inventory the entity has sold to customers. The difference between net sales and cost of sales is gross
profit. Then, other operating income is added and operating expenses are deducted from gross profit to arrive at
operating profit. Investment revenues, other gains and losses, and finance costs are considered to arrive at
profit before tax then income tax expense is deducted to have profit from continuing operations. Finally, profit
from discounted operations is taken to account to get profit for the period.
Service Merchandising
Income Statement Income statement
Revenues from Services Net Sales
minus
Cost of Sales
Minus equals
Gross Profit
add or minus
Expenses income or expenses
Equals equals
Profit Profit
The merchandising entity purchases inventory, sells the inventory and uses cash to purchase more
inventory – and the cycle continues. For cash sales, the cycle is from cash to inventory the back to cash. For sales
on account, the cycle is from cash to inventory to accounts receivable and back to cash. The faster the sale of
inventory and collection of cash, the higher the profits. The following illustrates the operating cycle of a
merchandiser:

2. Cash discounts are discounts for prompt payment. If a trade discount is also offered, cash discount is
computed on the net amount after the trade discount. Cash discount is designated by such notation as
The period covered by the discount, in this case – ten days is called the discount period. Cash discounts
are called purchase discount from the buyer’s viewpoint and sales discount from the seller’s point of view.
Transportation Costs
Freight bills usually show whether the shipping terms are FOB shipping point or FOB destination. When freight
terms are FOB shipping point, the buyer shoulders the shipping costs; ownership over goods passes from seller
to the buyer when inventory leaves the seller’s place of business – the shipping point. The buyer already owns
the goods while still in transit and therefore shoulders the transportation costs.
If the terms are FOB destination, the seller bears the shipping costs. Title passes only when the goods are
received by the buyer at point of destination; while in transit, the seller is still the owner of the goods so seller
shoulders the transportation costs.
Freight Terms
Who shoulders the transportation
costs? Who pays the shipper?
FOB Destination, Freight Prepaid Seller Seller
FOB Shipping point, Freight Collect Buyer Buyer
FOB Destination, Freight Collect Seller Buyer
FOB Shipping point, Freight Prepaid Buyer Seller
In freight prepaid, the seller pays the transportation costs before shipping the goods sold; while in
freight collect, freight entity collects from the buyer.
Perpetual inventory system is an alternative to periodic inventory system. Perpetually updating the
inventory account requires that at the time of purchase, merchandise acquisitions be recorded as debits to
inventory account. At the time of sale, the cost of sales is determined and recorded by debit to cost of sales
account and a credit to the inventory account.
When an entity uses the perpetual inventory system, the ending inventory should reconcile with the
actual physical count at the end of the period assuming that there is no theft, spoilage or error has occurred.
Periodic inventory system is primarily used in business by businesses that sell relatively inexpensive
goods and that are not yet using computerized scanning systems to analyze goods sold. A characteristic of
periodic inventory system is that no entries are made to the inventory account as the merchandise is bought and

3. sold. When goods are purchased, a separate set of accounts is used to accumulate information on the net cost
of the purchases.
Illustration: Assume a PERIODIC INVENTORY SYSTEM. Each purchase and sale of merchandise are recorded as it
occurs.
Feb 1 – purchased merchandise for cash P40,000.
Date Particulars REF DEBIT CREDIT
1-Feb Purchases 40,000
Cash 40,000
Purchased merchandise
Feb 10 – P10, 000 merchandise was purchased on credit terms 2/15, n/30
DATE Particulars REF DEBIT CREDIT
10-Feb Purchases 10,000
Accounts Payable 10,000
purchased merchandise on account terms: 2/15, n/30
Feb 12 – Purchased merchandise worth 30, 000. Paid 10, 000 and balance on account.
DATE Particulars REF DEBIT CREDIT
12-Feb Purchases 30,000
Cash 10,000
Accounts payable 20, 000
purchased merchandise on account with 10, 000 DP
Feb 15 – Purchased merchandise worth 30, 000. Paid 10, 000 cash and issued promissory note for the balance.
DATE Particulars REF DEBIT CREDIT
15-Feb Purchases 30,000
Cash 10,000
Notes Payable 20, 000
purchased merchandise with 10, 000 dp and PN

4. Feb 20 – Purchased merchandise worth P50, 000. Gave a down payment of P15, 000, issued P20, 000 promissory
note and promised to pay the balance within 5 days.
DATE Particulars REF DEBIT CREDIT
20-Feb Purchases 50,000
Cash 15,000
Notes payable 20,000
Accounts payable 15,000
purchased merchandise with DP and PN for the
balance
Feb 21 – Paid delivery fee of the purchased merchandise, P200.
DATE Particulars REF DEBIT CREDIT
21-Feb Freight In 200
Cash 200
paid freight
Feb 22- Paid merchandise purchased on Feb 10, terms: 2/15, n/30
DATE Particulars REF DEBIT CREDIT
22-Feb Accounts payable 10,000
Purchase Discount 200
Cash 9,800.00
Paid purchased merchandise
Feb 22 – returned P5, 000 worth of purchased merchandise on Feb 20
DATE Particulars REF DEBIT CREDIT
22-Feb Accounts payable 5,000
purchase returns and allowances 5,000
returned merchandise purchased on account

5. TERMS OF SALE TRANSACTIONS
JOURNAL ENTRIES
ACCOUNT DEBIT CREDIT
1. On cash basis Monkey Business
sold merchandise
worth P 20,000 to
Peppa Pig
Cash
Sales
Sold merchandise
for cash.
P 20,000
P 20,000
2. On credit
basis
Monkey Business
sold merchandise
worth P 15,000 on
account Peppa Pig
Accounts receivable
Sales
Sold merchandise
on account.
P 15,000
P 15,000
1. On credit basis
supported by a
note
Received a 10-day
6% note for
13,000 from Peppa
Pig for
merchandise sold.
Notes Receivable
Sales
Received notes
receivable.
P 13,000
P 13,000
2. With a down
payment and
part of the
balance is
supported by a
promissory note
and part on
account.
Sold merchandise
to Papi Dogo for
40,000. Received
P 5,000 down, 15-
day 6% for 15,000
and the balance is
on account.
Cash
Notes Receivable
Account Receivable
Sales
Sold merchandise
on account.
P 5,000
15,000
20,000
P 40,000
Sales Returns and Allowances
Dissatisfied customers are allowed to return defective or unsatisfactory goods they purchased, or
they are allowed to keep such goods and are given an allowance for the corresponding amount of defects.

6. Illustration:
On Sep. 1, 2006- Peppa Pig Store sold merchandise worth P 20,000 to Papi Dogo on account. Two days later,
Papi Dogo returned P 800 worth of defective merchandise.
DATE Particulars REF DEBIT CREDIT
1 - Sep Accounts Receivable- Papi Dogo 20,000
Sales 20,000
Sold merchandise on account
3-Sep Sales Return and Allowances 800
Accounts Receivable - Papi Dogo 800
Returned defective sales
On Sep. 5, 2006- Peppa Pig Store sold merchandise worth P 5,000 to Papi Dogo on account. Terms: 2/10, n/30.
DATE Particulars REF DEBIT CREDIT
5- Sep Accounts Receivable- Papi Dogo 5,000
Sales 5,000
Sold merchandise on account
On Sep. 8, 2006- Papi Dogo paid his account. Terms: 2/10, n/30
DATE Particulars REF DEBIT CREDIT
8-Sep Cash 4,900
Sales discount 100
Accounts Receivable - Papi Dogo 5,000
Collection from Papi Dogo
FREIGHT OUT OR TRANSPORTATION OUT
If the seller pays for the delivery of goods sold, the amount is debited to FREIGHT OUT. This is one of
the operating expenses of the seller.

7. On Sep. 9, 2006- Peppa Pig Store paid P 1,000 delivery of goods sold to Papi Dogo. (FOB Destination)
DATE Particulars REF DEBIT CREDIT
9- Sep Freight Out 1,000
Cash 1,000
Payment for freight
Problem #1
The following transactions were taken from among other activities of DE CASTRO STORE for the month of
November 2015.
November 02- Bought toys from Marvels Store P 35,000. Terms: 2/15, n/30
03-Paid freight for the toys purchased yesterday, P 2,200.
08-Returned toys which are out of specification, P2,500.
15- Paid salaries of the sales ladies for the first half of the month,
P 5,000.
16-Paid to Marvels Store.
17-Sold to Naruto P 13,500 worth of merchandise. Received a
downpayment of P 2,800 and the balance is on account. Terms:
2/15, n/30
21- Received defective toys returned by Naruto P 800.
30- Received full payment from Naruto.
Required: Prepare journal entries.

8. Problem #2: Purchases and Sales Transactions
During the month of April 2019, Esterlina Gevera Store and Nancy Mulles Distributors entered into the following
transactions:
April 5 – Gevera purchased merchandise on account from Mulles, 243, 000. Terms: FOB Shipping point; 3/10,
n/30. Paid freight charges amounting to 4, 000.
April 7 – Gevera purchased merchandise o account from Mulles, 470, 000. Terms: FOB Destination; 3/10, n/30.
Freight charges amounted to 7, 000.
April 8 – Gevera returned 18, 000 of merchandise to Mulles from the April 5 purchase.
April 10 – Gevera paid Mulles the amount due on the April 5 transaction less returns and discounts.
April 11 –Mulles paid the transportation charges on the April 7 shipment.
April 14 – Gevera paid Mulles the amount due from the April 7 transaction.
April 21 – Gevera purchased merchandise from Mulles on account, 270,000. Terms: FOB Shipping point;
3/10,n/30
April 25 – Freight charges on the April 21 transaction amounted to 3, 000 were paid by Gevera.
April 26 – Gevera paid Mulles the amount due on the April 21 transaction.
REQUIRED:
1. Prepare the journal entries for Esterlina Gevera Store.
2. Prepare the journal entries for Nancy Mulles Distributors.

9. Trial Balance - List of all accounts with a balance including their balances.
- Total all debits and all credits, prove debits equal credits
-Used as an aid in preparing financial statements
Preparation of Trial Balance:
1.HEADING should include: Name of the Company, Title of Document “Trial Balance”
and Date of the Trial Balance
2. All Asset accounts listed first.
3. Liabilities are shown next
4. Owner’s Capital
5. Owner’s Drawing
6. Sales
7. Sales Returns and Allowances
8. Sales discounts
9. Purchases
10. Purchase returns and allowances
11. Purchase discounts
12. Freight in
13. Expenses
14. Total all the debit amount and credit amount
15. Debit amount should be equal to Credit amount
What are 'Financial Statements‘?
➢ Financial Statements represent a formal record of the financial activities of an entity.
➢ These are written reports that quantify the financial strength, performance and liquidity of a company.
➢ Financial Statements reflect the financial effects of business transactions and events on the entity.
3 Main Financial Statements:
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
Income Statement –
❖ also known as the Profit and Loss Statement or Statement of Performance
reports the company's financial performance in terms of net profit or loss over a specified period.
2 elements of Income Statement:
1. Income
What the business has earned over a period (e.g. sales revenue, dividend income, professional revenue, etc)
2. Expense
The cost incurred by the business over a period (e.g. salaries and wages, rental charges, etc)

10. Balance Sheet
❖ also known as Statement of Financial Position
❖ presents the financial position of an entity at a given date.
3 elements of Balance Sheet:
1. ASSETS: Something a business owns or controls (e.g. cash, inventory, plant and machinery, etc)
2. LIABILITIES: Something a business owes to someone (e.g. creditors, bank loans, etc)
3. EQUITY: represents the amount of capital that remains in the business after its
assets are used to pay off its outstanding liabilities.
EQUITY = ASSETS – LIABILITIES
Name of Company
Statement of Performance
For the month ended ________
Sales P xx
less: Sales return and allowances P xx
Sales discounts xx P xx
Net Sales P xx
Less: COGS P xx
Gross Profit P xx
Less: Operating expenses
Advertising expense P xx
Rent expense xx
Salaries expense xx
Utilities expense xx
Freight out xx
Total Operating expenses P xx
Net Income P xx

11. Name of the Company
Statement of changes in Owner’s Equity
For the month ended __________
Capital beginning P xx
Add: Investment xx
Less: Drawings xx
Total P xx
Add: Net Income P xx
Capital end P xx
Name of Company
STATEMENT OF FINANCIAL POSITION
As of _______
ASSETS:
Current Assets
Cash and Cash Equivalents P xx
Receivables xx
Inventories xx
Prepaid Expenses xx
Total Current Assets P xx
Non-Current Assets
Property, Plant and Equipment P xx
Total Non-Current Assets P xx
TOTAL ASSETS P xx
LIABILITIES:
Current Liabilities
Accounts Payable P xx
Total Current Liabilities P xx
Non-Current Liabilities
Notes Payable P xx
Total Non-current Liabilities P xx
TOTAL LIABILITIES P xx
Capital end P xx
TOTAL LIABILITIES & CAPITAL P xx

12. Cash Flow Statement
❖ presents the movement in cash and bank balances over a period.
Classification:
1. Operating Activities-Represents the cash flow from primary activities of a business.
2. Investing Activities-Represents cash flow from the purchase and sale of assets
other than inventories (e.g. purchase of a factory plant)
3. Financing Activities-Represents cash flow generated or spent on raising and repaying
share capital and debt together with the payments of interest and
dividends.
Name of Company
Statement of Cash Flows
For the month ended __________
Operating Activities
Collection P xx
Cash sales xx
Cash refund xx
Total P xx
Payment of:
Supplies P xx
Freight out xx
Purchases + accounts xx
Freight in xx
Expenses xx
Refund xx P xx
Net cash used in operating activities P xx
Investing Activities
Purchase of equipment P xx
Net cash used in investing activities P xx
Financing Activities
Investment P xx
Borrowed money xx
Less: Withdrawal xx
Net cash provided by investing activities P xx
Net Increase in Cash and Cash equivalents P xx

13. Add: Cash and Cash equivalents, beg xx
Cash and Cash equivalents, end P xx
Closing entries are journal entries made at the end of an accounting period which transfer the balances of
temporary accounts to permanent accounts.
Temporary accounts include:
1. Revenue, Income and Gain Accounts
2. Expense and Loss Accounts
3. Dividend, Drawings or Withdrawals Accounts
4. Income Summary Account
Temporary Accounts- accounts found in the Statement of Performance. Also known as nominal accounts.
Income summary account is a temporary account which facilitates the closing process.
Name of Company
Statement of Performance
For the month ended ________
Sales P xx
less: Sales return and allowances P xx
Sales discounts xx P xx
Net Sales P xx
Less: COGS P xx
Gross Profit P xx
Less: Operating expenses
Advertising expense P xx
Rent expense xx
Salaries expense xx
Utilities expense xx
Freight out xx
Total Operating expenses P xx
Net Income P xx

14. Closing Entries: Perpetual Inventory
1. Close Sales, Sales Returns and Allowances, Sales Discounts to Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30
Sales
401 P xx
Sales Returns and
allowances 405 P xx
Sales Discounts 410 xx
Income Summary 601 xx
To close nominal account
2. Close COGS, all expenses to Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Income Summary 601 P xx
COGS 501 P xx
Advertising Expense 503 xx
Freight out 506 xx
Rent Expense 510 xx
Salaries Expense 530 xx
Utilities Expense 540
To close nominal account
3. Close Net Income/Loss to Capital and Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Income Summary 601 P xx
ABC, Capital 530 P xx
To close income to capital
4. Close Drawing to Capital
Date
2018
Particular Folio Debit Credit
Jun 30 ABC, Capital 530 P xx
ABC, Drawing P xx

15. To close drawing to capital
Closing Entries: Periodic Inventory
1. Close Sales, Sales Returns and Allowances, Sales Discounts to Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Sales 401 P xx
Sales Returns and
allowances 405 P xx
Sales Discounts 410 xx
Income Summary 601 xx
To close nominal account
2. Close Purchases, Purchase Returns and allowances, Purchase Discounts to Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Purchase Returns and allowances 502 P xx
Purchase Discounts 503 xx
Income summary 601 xx
Purchases 501 P xx
To close nominal account
3. Close Freight in, All expenses to Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Income Summary 601 P xx
Freight in 504 P xx
Advertising Expense 503 xx
Freight out 506 xx
Rent Expense 510 xx
Salaries Expense 530 xx
Utilities Expense 540 xx
To close nominal account

16. 4. Set-up Merchandise Inventory end to Income summary
Date
2018
Particular Folio Debit Credit
Jun 30 Merchandise Inventory
115
P xx
Income summary 601 P xx
To close nominal account
5. Close Net Income/Loss to Capital and Income Summary
Date
2018
Particular Folio Debit Credit
Jun 30 Income Summary 601 P xx
ABC, Capital 530 P xx
To close income to capital
6. Close Drawing to Capital
Date
2018
Particular Folio Debit Credit
Jun 30 ABC, Capital 530 P xx
ABC, Drawing P xx
To close drawing to capital

17. What is a Perpetual Inventory System?
A perpetual inventory system is a method of accounting for the increase or decrease
in inventory immediately following a sale or purchase. This system keeps continuous track of
inventory balances and provides complete details of changes in inventory through immediate
reporting.
It shows all changes in the levels of inventory in the “Inventory” account.
Periodic vs Perpetual
Transactions Periodic Perpetual
Purchase merchandise on
cash
Purchases xx
Cash xx
To record purchase
merchandise.
Merchandise Inventory xx
Cash xx
To record purchase merchandise.
Purchase merchandise on
credit / on account
Purchases xx
Accounts payable xx
To record purchase
merchandise on account.
Merchandise Inventory xx
Accounts Payable xx
To record purchase merchandise on
account.
Paid freight in Freight in xx
Cash xx
To record freight in.
Merchandise Inventory xx
Cash xx
To record freight in.
Merchandise returned on
account
Accounts Payable xx
Purchase returns and
Allowances xx
To record merchandise return.
Accounts Payable xx
Merchandise Inventory xx
To record merchandise return.
Payment to supplier /
creditor with discount
Accounts Payable xx
Purchase discount xx
Cash xx
To record payment with
purchase discount.
Accounts Payable xx
Merchandise Inventory xx
Cash xx
To record payment with purchase
discount.
Sales merchandise on cash Cash xx
Sales xx
To record sold merchandise.
( only one entry )
Cash xx
Sales xx
To record sold merchandise.
#
Cost of goods sold xx
Merchandise inventory xx
To record sold merchandise.
( two entries )
Sales merchandise on
account
Accounts Receivable xx
Sales xx
To record sold merchandise on
Accounts Receivable xx
Sales xx
To record sold merchandise on

18. account.
( only one entry )
account.
#
Cost of goods sold xx
Merchandise inventory xx
To record sold merchandise on
account.
( two entries )
Periodic Perpetual
Cash refund to customer for
defective merchandise
Sales returns and
Allowances xx
Cash xx
To record sales return.
Sales returns and
Allowances xx
Cash xx
To record sales return.
Returned defective
merchandise by customer
on account
Sales Returns xx
Accounts Receivable xx
To record returned defective
merchandise.
( one entry only )
Sales Returns xx
Accounts Receivable xx
To record returned defective
merchandise.
#
Merchandise Inventory xx
Cost of goods sold xx
To record returned defective
merchandise.
( two entries )
Collection with discount Cash xx
Sales discount xx
Accounts Receivable xx
To record collection with
discount.
Cash xx
Sales discount xx
Accounts Receivable xx
To record collection with discount.

19. Assume a Perpetual Inventory System
1. Feb. 01, 2016- Purchased merchandise for cash P 40,000.
2. Feb. 02 - Purchased merchandise on account from ABC Co., P 14,500 terms: 2/10,
n/30.
3. Feb. 04- Paid freight on Feb. 02 purchase, P 300.
4. Feb 05- Sold merchandise on account P 15,000, FOB Destination, terms: 2/10,
n/30. The cost of merchandise sold was P 12,300.
5. Feb. 06-Returned defective inventory to ABC Co., P 900.
Date Account F Debit Credit
Feb. 01,
2016
Merchandise Inventory
Cash
To record purchase of
merchandise
115
101
P 40,000
P 40,000
Date Account F Debit Credit
Feb. 02,
2016
Merchandise Inventory
Accounts Payable-ABC
To record purchase of
merchandise on account.
115
201
P 14,500
P 14,500
Date Account F Debit Credit
Feb. 04,
2016
Merchandise Inventory
Cash
To record freight in.
115
101
P 300
P 300
Date Account F Debit Credit
Feb. 04,
2016
Feb. 04,
2016
Accounts Receivable
Sales
To record sales on account.
#
Cost of goods sold
Merchandise inventory
To record sold merchandise.
105
401
501
115
P 15,000
12,300
P 15,000
12,300
Date Account F Debit Credit
Feb. 06,
2016
Accounts Payable-ABC
Merchandise Inventory
To record merchandise
201
115
P 900
P 900

20. 6. Feb. 10- Paid ABC Co.
7. Feb. 11- Made refund to cash customers for defective merchandise, P 550.
8. Feb. 12- Collected Feb. 05 sales.
return.
Date Account F Debit Credit
Feb. 10,
2016
Accounts Payable-ABC
Merchandise Inventory
Cash
To record payment of
account.
201
115
101
P 13,600
P 272
13,328
Date Account F Debit Credit
Feb. 11,
2016
Sales Returns and
Allowances
Cash
To record sales return.
401
101
P 550
P 550
Date Account F Debit Credit
Feb. 12,
2016
Cash
Sales discounts
Accounts Receivable
To record collection with
discount.
101
410
105
P 14,700
300
15,000

21. PRACTICE PROBLEM
KV DISTRIBUTORS
APRIL 1 – The KV Distributors, was registered as a single proprietorship with the Department of Trade
and industry. Kaevee Palapas Palapas invested 85, 000. 00
2 - Bought computer equipment for 15, 000 cash
2 – Bought merchandise on account from Rosegel Supply Co., 15, 900, terms 2/10, n/30.
3 – Bought office supplies on cash basis 1000.
4 – Sold merchandise on account 15, 200, fob destination, terms 2/10 n/30. The cost of
merchandise sold was 12, 200.
5 – Paid 500 freight on April 4 sale.
6 – Received credit from Rosegel Supply Co. for merchandise returned, 300.
11 – Paid Rosegel Supply co.
13 – Collected from April 4 customers.
14 – Bought merchandise on cash basis for 15, 500.
15 – Paid salaries for 2, 500.
16 – Borrowed money from RCBC Bank, signed promissory note for 15, 000.o
17 – Received return from a supplier on cash purchase of April 14, P 800.
18 – Bought merchandise from BUYAN CO., 14, 200, FOB Shipping point, terms, 2/10, n/30.
20 – Paid freight on April 18 purchase, 700
23 – Sold merchandise for cash, 16, 400. The merchandise sold had cost of 10, 500.
26 – Bought merchandise for cash 11, 300.
27 – Paid BUYAN CO. on the April 18 purchase, 9, 000. No discount allowed on partial payment
28 – Kaevee Palapas got cash from the business, 2, 022.
29 – Made refund to cash customers for defective merchandise , 1000.
30 – Sold merchandise on account, 13, 700, n/30. Cost of the merchandise sold is 11, 000.
30 – Paid the following: Advertising, 1,000; Utilities, 600; rent, 3000, salaries 2, 500.

22. KV PALAPAS COMPANY
Chart of Accounts
Use for Journalization and Posting to the ledger
100 ASSETS 400 INCOME
101 CASH 401 SALES
105 ACCOUNTS RECEIVABLE 405 SALES RETURNS AND
ALLOWANCES
115 MERCHANDISE INVENTORY 410 SALES DISCOUNTS
120 SUPPLIES 500 EXPENSES
150 EQUIPMENT 501 COST OF GOODS SOLD
200 LIABILITIES 503 ADVERTISING EXPENSE
201 ACCOUNTS PAYABLE 506 FREIGHT OUT
202 NOTES PAYABLE 510 RENT EXPENSE
300 EQUITY 530 SALARIES
301 PALAPAS, CAPITAL 540 UTILITIES
302 PALAPAS, DRAWING 600 INCOME SUMMARY
KV PALAPAS COMPANY
Chart of Accounts
Use for FINANCIAL STATEMENTS PREPARATION
100 ASSETS 400 INCOME
101 CASH & CASH EQUIVALENTS 401
105 RECEIVABLES 405 NET SALES
115 INVENTORIES 410
120 PREPAID EXPENSES 500 EXPENSES
150 PROPERTY, PLANT & EQUIPMENT 501 COSST OF GOODS SOLD
200 LIABILITIES 503 ADVERTISING EXPENSE
201 ACCOUNTS PAYABLE 506 FREIGHT OUUT
202 NOTES PAYABLE 510 RENT EXPENSE
300 EQUITY 530 SALARIES
301 PALAPAS, CAPITAL 540 UTILITIES
302 PALAPAS, DRAWING