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Happy Living Inc. is an enterprise owned by Sir Fred Chiu. It supplies sand and gravel in Koronadal City. In April 2021, its loyal customer Sheila’s Park ordered 30 cubic of sand and gravel worth P10,000. In May, Happy Living Inc. delivered the 30 cubic of sand to Sheila’s Park who promised to pay in June 2021. In July 2021, Sir Fred, the owner, bought a brand-new car for his own worth P1,200,000, and a secondhand delivery dump truck for Happy Living Inc. worth P500,000. 1. In which month should the accountant of Happy Living Inc record the sales of 30 cubic of sand and gravel to Sheila’s Park? Why? At how much? 2. Which of the two purchase transactions should be recorded by the accountant of sand and gravel In.? Why? At how much?
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