Cash purchases of Manila Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000. How much cash was paid on accounts payable?P4,400,000 P3,500,000P4,900,000 P4,000,000

The term payable includes both the trade creditors and Bills payable. the bill of exchange is known…

Answered: Cash purchases of Manila Company for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 24CE

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Cash purchases of Manila Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000.

How much cash was paid on accounts payable?

P4,400,000 P3,500,000
P4,900,000 P4,000,000

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