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At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales. What is the amount of sales for the year? [A] 2,750,000 [B] 2,050,000 [C] 2,650,000 [D] 700,000

At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales. What is the amount of sales for the year? [A] 2,750,000 [B] 2,050,000 [C] 2,650,000 [D] 700,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...
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At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales.

What is the amount of sales for the year?

[A] 2,750,000

[B] 2,050,000

[C] 2,650,000

[D] 700,000

 

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