The following information relates to ELEPHANT INC. for the year ended 2020:Cash purchases - grossP300,000Trade accounts payable - beginning500,000Trade accounts payable - ending400,000Trade notes payable decreased by200,000Cash payments on payables1,000,000Purchase return and discounts (inclusive of P15,000 receipts fromsuppliers)20,000Inventory increased by100,000Compute the cost of goods sold under accrual basis of accounting.A. P885,000B. P950,000C. P925,000D. P845,000

Name: The following information relates to ELEPHANT INC. for the year ended
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Description: The following information relates to ELEPHANT INC. for the year ended 2020:Cash purchases - grossP300,000Trade accounts payable - beginning500,000Trade accounts payable - ending400,000Trade notes payable decreased by200,000Cash payments on payables1

Solution: Credit purchases = Cash payments on payable - Decrease in trade accounts payable -…

Business

Accounting

The following information relates to ELEPHANT INC. for the year ended 2020 Cash purchases - gross P300,000 Trade accounts payable - beginning 500,000 Trade accounts payable - ending 400,000 Trade notes payable decreased by 200,000 Cash payments on payables 1,000,000

The following information relates to ELEPHANT INC. for the year ended 2020 Cash purchases - gross P300,000 Trade accounts payable - beginning 500,000 Trade accounts payable - ending 400,000 Trade notes payable decreased by 200,000 Cash payments on payables 1,000,000

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

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MC

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