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A seller of goods had the following details of sales and collection during the month: Receivables, beginning P 200,000.00 Gross sales   400,000.00 Less: Collection   500,000.00 Receivables, end P 100,000.00   1. What is the amount subject to business tax?  a. P500,000 b. P400,000 c. P300,000 d. P200,000   2. In the immediately preceding problem, determine the amount subject to business tax if the taxpayer is a seller of services. a. P500,000 b. P400,000 c. P300,000 d. P200,000

A seller of goods had the following details of sales and collection during the month: Receivables, beginning P 200,000.00 Gross sales   400,000.00 Less: Collection   500,000.00 Receivables, end P 100,000.00   1. What is the amount subject to business tax?  a. P500,000 b. P400,000 c. P300,000 d. P200,000   2. In the immediately preceding problem, determine the amount subject to business tax if the taxpayer is a seller of services. a. P500,000 b. P400,000 c. P300,000 d. P200,000

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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A seller of goods had the following details of sales and collection during the month:

Receivables, beginning

P

200,000.00

Gross sales

 

400,000.00

Less: Collection

 

500,000.00

Receivables, end

P

100,000.00

 

1. What is the amount subject to business tax? 

a. P500,000

b. P400,000

c. P300,000

d. P200,000

 

2. In the immediately preceding problem, determine the amount subject to business tax if the taxpayer is a seller of services.

a. P500,000

b. P400,000

c. P300,000

d. P200,000

 

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