Liam Co., had the following data in 2020. Compute the MCIT at 2%. Gross Sales 1,000,000 Sales discounts & allowances 30,000 Sales returns by customers 20,000 Interest income from bank deposit 20,000 Rental income from vacant premises 60,000 Inventory, at the start of the year 220,000 Gross purchases 700,000 Net freight on purchases during the year 25,000 Purchase discounts and allowances 40,000 Purchases returned to suppliers 50,000 Inventory at the end of the year 160,000

Principles of Accounting Volume 2
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Chapter7: Budgeting
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Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Liam Co., had the following data in 2020. Compute the MCIT at 2%. Gross Sales 1,000,000 Sales discounts & allowances 30,000 Sales returns by customers 20,000 Interest income from bank deposit 20,000 Rental income from vacant premises 60,000 Inventory, at the start of the year 220,000 Gross purchases 700,000 Net freight on purchases during the year 25,000 Purchase discounts and allowances 40,000 Purchases returned to suppliers 50,000 Inventory at the end of the year 160,000
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