On June 1, 2021, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on account. Pitt allowed trade discounts of 30% and 20%. On June 11, 2021, the customer paid in full. Credit terms were 2/10, n/30 and the sale was made FOB shipping point. Pitt prepaid P200,000 of delivery costs for Burr as an accommodation.1. What amount should be reported as sales revenue?a. 5,000,000b. 2,800,000c. 3,500,000d. 2,500,000 2. What amount was received by Pitt from Burr as remittance in full?a. 2,744,000b. 2,940,000c. 2,944,000d. 3,140,000 discounts of 30% and 20%. On June 11, 2021, the customerprice of P5,000,000 to Burr on account. Pitt allowed tradeOn June 1, 2021, Pitt Company sold merchandise with a listProblem 4-15 (AICPA Adapted)On June 1, 2021, Pitt Company sold merchandise with a listprice of P5,000,000 to Burr on account. Pitt allowed tradediscounts of 30% and 20%. On June 11, 2021, the customerpaid in full.Credit terms were 2/10, n/30 and the sale was made FORshipping point. Pitt prepaid P200,000 of delivery costs forBurr as an accommodation.1. What amount should be reported as sales revenue?a. 5,000,000b. 2,800,000c. 3,500,000d. 2,500,000с.2. What amount was received by Pitt from Burr asremittance in full?a. 2,744,000b. 2,940,000c. 2,944,000d. 3,140,000

The gross profit is calculated as difference between sales and cost of goods sold. Net sales is…

Answered: On June 1, 2021, Pitt Company sold…

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 4P

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On June 1, 2021, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on account. Pitt allowed trade discounts of 30% and 20%. On June 11, 2021, the customer paid in full. Credit terms were 2/10, n/30 and the sale was made FOB shipping point. Pitt prepaid P200,000 of delivery costs for Burr as an accommodation.

1. What amount should be reported as sales revenue?

a. 5,000,000

b. 2,800,000

c. 3,500,000

d. 2,500,000

2. What amount was received by Pitt from Burr as remittance in full?

a. 2,744,000

b. 2,940,000

c. 2,944,000

d. 3,140,000

discounts of 30% and 20%. On June 11, 2021, the customer
price of P5,000,000 to Burr on account. Pitt allowed trade
On June 1, 2021, Pitt Company sold merchandise with a list
Problem 4-15 (AICPA Adapted)
On June 1, 2021, Pitt Company sold merchandise with a list
price of P5,000,000 to Burr on account. Pitt allowed trade
discounts of 30% and 20%. On June 11, 2021, the customer
paid in full.
Credit terms were 2/10, n/30 and the sale was made FOR
shipping point. Pitt prepaid P200,000 of delivery costs for
Burr as an accommodation.
1. What amount should be reported as sales revenue?
a. 5,000,000
b. 2,800,000
c. 3,500,000
d. 2,500,000
с.
2. What amount was received by Pitt from Burr as
remittance in full?
a. 2,744,000
b. 2,940,000
c. 2,944,000
d. 3,140,000

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