Choices:P6,550,000P6,600,000P6,350,000P6,650,000 Walang Kayo Company provided the following data:12/31/2020P1,000,00012/31/2019P 600,0004,000,0002,400,0001,200,000InventorySalesCost of Goods SoldAccounts receivable- trade1,350,0001,850,000Accounts payable- trade1,500,000In 2020, accounts written off amounted to P100,000. Sales returns with credit memo amounted toP150,000 and purchase returns, P50,000. Cash receipts from customers after P200,000 discounts totaledP6,000,000 while cash payments to trade creditors amounted to P4,000,000 after discount of P300,000.Cash paid to customers for goods returned was P50,000. On this transaction accounts receivable is debited.Under accrual basis, what amount should be reported as gross sales for the current year?

As per Accrual concept every income and expense should be recognise in the books of accounts as and…

Walang Kayo Company provided the following data: 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000 12/31/2020 P1,000,000 Inventory Sales Cost of Goods Sold Accounts receivable- trade 1,350,000 1. 850.000 Accounts navable, trade 1. 500 .00O

Walang Kayo Company provided the following data: 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000 12/31/2020 P1,000,000 Inventory Sales Cost of Goods Sold Accounts receivable- trade 1,350,000 1. 850.000 Accounts navable, trade 1. 500 .00O

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Question

Choices:

P6,550,000

P6,600,000

P6,350,000

P6,650,000

Walang Kayo Company provided the following data:
12/31/2020
P1,000,000
12/31/2019
P 600,000
4,000,000
2,400,000
1,200,000
Inventory
Sales
Cost of Goods Sold
Accounts receivable- trade
1,350,000
1,850,000
Accounts payable- trade
1,500,000
In 2020, accounts written off amounted to P100,000. Sales returns with credit memo amounted to
P150,000 and purchase returns, P50,000. Cash receipts from customers after P200,000 discounts totaled
P6,000,000 while cash payments to trade creditors amounted to P4,000,000 after discount of P300,000.
Cash paid to customers for goods returned was P50,000. On this transaction accounts receivable is debited.
Under accrual basis, what amount should be reported as gross sales for the current year?

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