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Red Ribbon sells cakes and pastry items to well known hotels and resorts along Bukidnon province. The hotels are allowed credit based on the track record of the hotels. The total amounts received or receivable from sales by Red Ribbon in for the second quarter of the current year were P2,200,000 VAT inclusive. The products were sold partly on a cash bases and partly on account. Based on reliable estimates, 60% of the total sales were sold on account. 15. How much is the value added tax on the sales account for the second quarter?

Red Ribbon sells cakes and pastry items to well known hotels and resorts along Bukidnon province. The hotels are allowed credit based on the track record of the hotels. The total amounts received or receivable from sales by Red Ribbon in for the second quarter of the current year were P2,200,000 VAT inclusive. The products were sold partly on a cash bases and partly on account. Based on reliable estimates, 60% of the total sales were sold on account. 15. How much is the value added tax on the sales account for the second quarter?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 8P: Monitoring of Receivables The Russ Fogler Company, a small manufacturer of cordless telephones,...
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Red Ribbon sells cakes and pastry items to well known hotels and resorts along Bukidnon province. The hotels are allowed credit
based on the track record of the hotels. The total amounts received or receivable from sales by Red Ribbon in for the second quarter of
the current year were P2,200,000 VAT inclusive. The products were sold partly on a cash bases and partly on account. Based on
reliable estimates, 60% of the total sales were sold on account.
15. How much is the value added tax on the sales account for the second quarter?

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