Library Company provided the following data: On January 1, the company’s account receivable and accounts payable were P1,200,000 and P1,500,000, respectively. On December 31, account receivable and accounts payable are P1,350,000 and P1,850,000, respectively. During the current year, accounts written off amounted to P100,000. Sales returns totaled P250,000, of which P50,000 was paid to customers. Cash receipts from customers after P500,000 sales discount amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,0000 after purchase discount of P200,000. Purchase returns amounted to P400,000, of which P100,000 was received from supplier. Under accrual, what amount should be reported as gross sales?
Library Company provided the following data: On January 1, the company’s account receivable and accounts payable were P1,200,000 and P1,500,000, respectively. On December 31, account receivable and accounts payable are P1,350,000 and P1,850,000, respectively. During the current year, accounts written off amounted to P100,000. Sales returns totaled P250,000, of which P50,000 was paid to customers. Cash receipts from customers after P500,000 sales discount amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,0000 after purchase discount of P200,000. Purchase returns amounted to P400,000, of which P100,000 was received from supplier. Under accrual, what amount should be reported as gross sales?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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