The problem describes three transactions of TESSITO SARL that occurred in January 2021. Transaction 1 (5/01): Purchase of goods from DIOP: 400 kg at 23,000 F per kg, discounts of 10% and 8%, a cash discount of 3%, transport cost of 80,000 F, and VAT of 18%. Transaction 2 (8/01): Sale of goods to CISSE: 75 kg at 25,000 F per kg, a discount of 10%, a cash discount of 3%, transport cost of 75,000 F, and VAT of 18%. Transaction 3 (12/01): Credit note to CISSE: return of goods worth 375,000 F, 2% discount, and reimbursed transport costs of 15,000 F. The task is to establish all invoices and record the invoices in the journal of TESSITO SARL under the perpetual inventory method, with a markup rate of 25%.

1. Problem Description

The problem describes three transactions of TESSITO SARL that occurred in January

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1. Transaction 1 (5/01): Purchase of goods from DIOP: 400 kg at 23,000 F per kg, discounts of 10% and 8%, a cash discount of 3%, transport cost of 80,000 F, and VAT of 18%.

Transaction 2 (8/01): Sale of goods to CISSE: 75 kg at 25,000 F per kg, a discount of 10%, a cash discount of 3%, transport cost of 75,000 F, and VAT of 18%.

Transaction 3 (12/01): Credit note to CISSE: return of goods worth 375,000 F, 2% discount, and reimbursed transport costs of 15,000 F.

The task is to establish all invoices and record the invoices in the journal of TESSITO SARL under the perpetual inventory method, with a markup rate of 25%.

2. Solution Steps

Transaction 1 (5/01): Purchase from DIOP

Gross purchase price = $400 \text{ kg} \times 23,000 \text{ F/kg} = 9,200,000 \text{ F}$

First discount (10%) = $9,200,000 \times 0.10 = 920,000 \text{ F}$

Price after first discount = $9,200,000 - 920,000 = 8,280,000 \text{ F}$

Second discount (8%) = $8,280,000 \times 0.08 = 662,400 \text{ F}$

Price after second discount = $8,280,000 - 662,400 = 7,617,600 \text{ F}$

Cash discount (3%) = $7,617,600 \times 0.03 = 228,528 \text{ F}$

Price after cash discount = $7,617,600 - 228,528 = 7,389,072 \text{ F}$

Transport cost = $80,000 \text{ F}$

Subtotal = $7,389,072 + 80,000 = 7,469,072 \text{ F}$

VAT (18%) = $7,469,072 \times 0.18 = 1,344,432.96 \text{ F}$

Total invoice amount = $7,469,072 + 1,344,432.96 = 8,813,504.96 \text{ F}$

Transaction 2 (8/01): Sale to CISSE

Gross sale price = $75 \text{ kg} \times 25,000 \text{ F/kg} = 1,875,000 \text{ F}$

Discount (10%) = $1,875,000 \times 0.10 = 187,500 \text{ F}$

Price after discount = $1,875,000 - 187,500 = 1,687,500 \text{ F}$

Cash discount (3%) = $1,687,500 \times 0.03 = 50,625 \text{ F}$

Price after cash discount = $1,687,500 - 50,625 = 1,636,875 \text{ F}$

Transport cost = $75,000 \text{ F}$

Subtotal = $1,636,875 + 75,000 = 1,711,875 \text{ F}$

VAT (18%) = $1,711,875 \times 0.18 = 308,137.5 \text{ F}$

Total invoice amount = $1,711,875 + 308,137.5 = 2,020,012.5 \text{ F}$

Cost of goods sold calculation:

Selling price = $25,000 \text{ F/kg}$

Markup percentage = 25%

Cost price calculation: $25,000 = \text{Cost Price} + 0.25 \times \text{Cost Price} = 1.25 \times \text{Cost Price}$

Cost Price = $25,000 / 1.25 = 20,000 \text{ F/kg}$

Total cost of goods sold = $75 \text{ kg} \times 20,000 \text{ F/kg} = 1,500,000 \text{ F}$

Transaction 3 (12/01): Credit note to CISSE

Value of returned goods = $375,000 \text{ F}$

Discount (2%) = $375,000 \times 0.02 = 7,500 \text{ F}$

Price after discount = $375,000 - 7,500 = 367,500 \text{ F}$

Reimbursed transport cost = $15,000 \text{ F}$

Total credit note amount = $367,500 + 15,000 = 382,500 \text{ F}$

Cost of returned goods calculation:

Markup percentage = 25%

Cost price calculation: $375,000 = \text{Cost Price} + 0.25 \times \text{Cost Price} = 1.25 \times \text{Cost Price}$

Cost Price = $375,000 / 1.25 = 300,000 \text{ F}$

3. Final Answer

Transaction 1 (5/01): Total invoice amount = 8,813,504.96 F

Transaction 2 (8/01): Total invoice amount = 2,020,012.5 F, Cost of goods sold = 1,500,000 F

Transaction 3 (12/01): Total credit note amount = 382,500 F, Cost of returned goods = 300,000 F