The following balances were reported by Nagpapangap Company on December 31, 2020 and2019:2020: Accounts payable - P3,500,000; Notes payable - P4,000,0002019: Accounts payable - P2,500,000; Notes payable - P1,500,000On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. Allother notes payable arose from purchases of merchandise. Total payment to suppliers in 2020amounted to P11,000,000, after purchase discount of P250,000. During 2020, companyreturned defective merchandise costing P500,000.What is the amount of gross purchases for 2020 under the accrual basis? *

Gross Purchase refers to Total Purchase it including cost of goods returned and Discounts also.…

The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. Al other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis? *

The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. Al other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis? *

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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