The problem describes three transactions of TESSITO SARL during January 2021. The task is to: 1. Establish all the invoices.

1. Problem Description

The problem describes three transactions of TESSITO SARL during January

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1. The task is to:

1. Establish all the invoices.

2. Record the invoices in the journal of TESSITO SARL under the perpetual inventory method, with a markup rate of 25%.

2. Solution Steps

Let's analyze each transaction and create the invoices. The currency is Francs (F).

Transaction 1: 05/01, Invoice #25 from DIOP: Purchase of merchandise: 400 kg at 23,000 F/kg, discounts of 10% and 8%, cash discount of 3%, transportation 80,000 F, VAT 18%.

* Gross Purchase Price: $400 \text{ kg} \times 23,000 \text{ F/kg} = 9,200,000 \text{ F}$

* Discount 1 (10%): $9,200,000 \text{ F} \times 0.10 = 920,000 \text{ F}$

* Price after Discount 1: $9,200,000 \text{ F} - 920,000 \text{ F} = 8,280,000 \text{ F}$

* Discount 2 (8%): $8,280,000 \text{ F} \times 0.08 = 662,400 \text{ F}$

* Price after Discount 2: $8,280,000 \text{ F} - 662,400 \text{ F} = 7,617,600 \text{ F}$

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

* Net Purchase Price (before transport): $7,617,600 \text{ F} - 228,528 \text{ F} = 7,389,072 \text{ F}$

* Transportation Cost: $80,000 \text{ F}$

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

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

* Total Invoice Amount: $7,469,072 \text{ F} + 1,344,432.96 \text{ F} = 8,813,504.96 \text{ F}$

Transaction 2: 08/01, Invoice #30 to CISSE: Sale of merchandise: 75 kg at 25,000 F/kg, discount of 10%, cash discount of 3%, transportation 75,000 F, VAT 18%.

* Gross Sales Price: $75 \text{ kg} \times 25,000 \text{ F/kg} = 1,875,000 \text{ F}$

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

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

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

* Net Sales Price (before transport): $1,687,500 \text{ F} - 50,625 \text{ F} = 1,636,875 \text{ F}$

* Transportation Cost: $75,000 \text{ F}$

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

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

* Total Invoice Amount: $1,711,875 \text{ F} + 308,137.5 \text{ F} = 2,020,012.5 \text{ F}$

Transaction 3: 12/01, Credit Note #34 to CISSE: Return of merchandise 375,000 F, rebate of 2%, refunded transport 15,000 F.

* Return of Merchandise: $375,000 \text{ F}$

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

* Net Return Value (before transport): $375,000 \text{ F} - 7,500 \text{ F} = 367,500 \text{ F}$

* Refunded Transportation: $15,000 \text{ F}$

* Total Credit Note Amount: $367,500 \text{ F} + 15,000 \text{ F} = 382,500 \text{ F}$

Calculation of the Cost of Goods Sold (COGS) for the sales transaction

Sales = 1,875,000

Markup = 25%

Sales = COGS + 25% of COGS

1,875,000 = COGS * 1.25

COGS = 1,875,000 / 1.25 = 1,500,000

Calculation of the Cost of Goods Sold (COGS) for the return

Return = 375,000

Markup = 25%

Return = COGS + 25% of COGS

375,000 = COGS * 1.25

COGS = 375,000 / 1.25 = 300,000

Journal entries:

* 5/01 Purchase: Debit Inventory 7,389,072, Debit VAT 1,344,432.96, Debit Transport 80,000, Credit Cash 8,813,504.96

* 8/01 Sales: Debit Cash 2,020,012.5, Credit Sales Revenue 1,636,875, Credit VAT 308,137.

5. Debit COGS 1,500,000, Credit Inventory 1,500,000

* 12/01 Sales Return: Debit Sales Returns 367,500, Debit Transport 15,000, Credit Cash 382,

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0. Debit Inventory 300,000, Credit COGS 300,000

3. Final Answer

The invoice details are as follows:

* Invoice #25 from DIOP: Total Invoice Amount = 8,813,504.96 F

* Invoice #30 to CISSE: Total Invoice Amount = 2,020,012.5 F

* Credit Note #34 to CISSE: Total Credit Note Amount = 382,500 F

The journal entries are:

* 5/01:

* Debit Inventory: 7,389,072 F

* Debit VAT: 1,344,432.96 F

* Debit Transport: 80,000 F

* Credit Cash: 8,813,504.96 F

* 8/01:

* Debit Cash: 2,020,012.5 F

* Credit Sales Revenue: 1,636,875 F

* Credit VAT: 308,137.5 F

* Debit COGS: 1,500,000 F

* Credit Inventory: 1,500,000 F

* 12/01:

* Debit Sales Returns: 367,500 F

* Debit Transport: 15,000 F

* Credit Cash: 382,500 F

* Debit Inventory: 300,000 F

* Credit COGS: 300,000 F