The following are taken from the record of ABM Company for the year ended December 31, 20X2: CREDIT P764,985 8,200 5,465 DEBIT |Sales Purchase Discount Purchase Returns and allowances Purchases Freight-in Sales discount Sales retuns and allowances Depreciation Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense Interest Income Interest Expense Gain on sale of PPE Bad Debts Expense 459,990 9,180 13,300 5,455 25,000 10,000 80,000 55,000 35,000 60,000 5.444 5,677 5.465 ??? • Based on actual physical count, inventory balance are as follows: January 1, 20X2 December 31, 20X2 P25,455 P20,765 • Bad debts expense is 4% of net sales. Classify the bad debt expense as general and administrative expense. Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases c. Cost of goods sold d. Bad debts expense e. Gross Profit f. Total Expenses

The following are taken from the record of ABM Company for the year ended December 31, 20X2: CREDIT P764,985 8,200 5,465 DEBIT |Sales Purchase Discount Purchase Returns and allowances Purchases Freight-in Sales discount Sales retuns and allowances Depreciation Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense Interest Income Interest Expense Gain on sale of PPE Bad Debts Expense 459,990 9,180 13,300 5,455 25,000 10,000 80,000 55,000 35,000 60,000 5.444 5,677 5.465 ??? • Based on actual physical count, inventory balance are as follows: January 1, 20X2 December 31, 20X2 P25,455 P20,765 • Bad debts expense is 4% of net sales. Classify the bad debt expense as general and administrative expense. Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases c. Cost of goods sold d. Bad debts expense e. Gross Profit f. Total Expenses

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PB: Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables....

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