Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31, 2019. The following data were available at year end: 2018 2019 Inventory 600,000 1,000,000 Sales 4,000,000 Cost of goods sold 2,400,000 Accounts receivable 1,200,000 1,350,000 Accounts payable 1,500,000 1,850,000 In 2019, accounts written off amounted to P100,000. Sales returns amounted to P250,000, of which an amount of P50,000 was paid to customers. Purchase returns amounted to P400,000, of which an amount of P100,000 was received from suppliers. Cash receipts from customers after P500,000 discounts totaled P8,000,000. Cash Payments to trade creditors amounted to P4,700,000 after discounts of P300,000 49. Under accrual basis, what is the amount of gross sales for the current year? а. 9,600,000 b. 8,950,000 8,250,000 d. 8,850,000 С. 50. Under accrual basis, what is the amount of gross purchases for the current year? a. 5,650,000 b. 5,750,000 c. 5,350,000 d. 5,050,000

Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31, 2019. The following data were available at year end: 2018 2019 Inventory 600,000 1,000,000 Sales 4,000,000 Cost of goods sold 2,400,000 Accounts receivable 1,200,000 1,350,000 Accounts payable 1,500,000 1,850,000 In 2019, accounts written off amounted to P100,000. Sales returns amounted to P250,000, of which an amount of P50,000 was paid to customers. Purchase returns amounted to P400,000, of which an amount of P100,000 was received from suppliers. Cash receipts from customers after P500,000 discounts totaled P8,000,000. Cash Payments to trade creditors amounted to P4,700,000 after discounts of P300,000 49. Under accrual basis, what is the amount of gross sales for the current year? а. 9,600,000 b. 8,950,000 8,250,000 d. 8,850,000 С. 50. Under accrual basis, what is the amount of gross purchases for the current year? a. 5,650,000 b. 5,750,000 c. 5,350,000 d. 5,050,000

Name: Davi Company has apprehensions of possible pilferage in the merchandi
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Description: Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31,2019. The following data were available at year end:20182019Inventory600,0001,000,000Sales4,000,000Cost of goods sold2,400,000Accounts receivable1,200,0

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11P: Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015....

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