Calapan Company provided the following data January 1 December 31 1,200,000 1,000,000 Inventory Cost of goods sold Accounts receivable Accounts payable 5,500,000 1,200,000 1,350,000 1,500,000 1,850,000 During the current year, accounts written off amounted to P100,000. Sales returns with credit memo totaled P250,000. Cash refund to customers for returned goods of P50,000 was debited to accounts receivable. Cash receipts from customers after P500,000 sales discounts amounted to P8,000,000, Cash payments to trade creditors totaled P5,000,000 after purchase discounts of P200,000. Purchase returns with debit memo amounted to P400,000.
Calapan Company provided the following data January 1 December 31 1,200,000 1,000,000 Inventory Cost of goods sold Accounts receivable Accounts payable 5,500,000 1,200,000 1,350,000 1,500,000 1,850,000 During the current year, accounts written off amounted to P100,000. Sales returns with credit memo totaled P250,000. Cash refund to customers for returned goods of P50,000 was debited to accounts receivable. Cash receipts from customers after P500,000 sales discounts amounted to P8,000,000, Cash payments to trade creditors totaled P5,000,000 after purchase discounts of P200,000. Purchase returns with debit memo amounted to P400,000.
Chapter7: Accounting Information Systems
Section: Chapter Questions
Problem 5EB: Catherines Cookies has a beginning balance in the Accounts Receivable control total account of...
Related questions
Question
1. Under accrual basis, what amount should be reported as gross sales?
a. 8,900,000
b. 8,950,000
c. 8,250,000
d. 8,850,000
2. Under accrual basis, what amount should be reported as gross purchases?
a. 5,250,000
b. 5,950,000
c. 5,750,000
d. 5,650,000
Transcribed Image Text:Calapan Company provided the following data:
January 1
December 31
1,200,000
1,600,000
Inventory
Coat of goods sold
Accounts receivable
Accounts payable
5,500,000
1,200,000
1,350,000
1,500,000
1,850,000
During the current year, accounts written off amounted to
P100,000. Sales returns with credit memo totaled P250,000.
Cash refund to customers for returned goods of P50,000 was
debited to accounts receivable.
Cash receipts from customers after P500,000 sales discounts
amounted to P8,000,000.
Cash payments to trade creditors totaled P5,000,000 after
purchase discounts of P200,000. Purchase returns with debit
memo amounted to P400,000.
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