2. Under accrual basis, what amount should be reported as gross purchases?a. 5,250,000b. 5,950,000c. 5,750,000d. 5,650,0003. What amount should be reported as cost of goods sold under accrual basis?a. 5,550,000b. 5,750,000c. 4,950,000d. 5,350,000 Calapan Company provided the following data:January 1December 311,200,0001,600,000InventoryCoat of goods soldAccounts receivableAccounts payable5,500,0001,200,0001,350,0001,500,0001,850,000During the current year, accounts written off amounted toP100,000. Sales returns with credit memo totaled P250,000.Cash refund to customers for returned goods of P50,000 wasdebited to accounts receivable.Cash receipts from customers after P500,000 sales discountsamounted to P8,000,000.Cash payments to trade creditors totaled P5,000,000 afterpurchase discounts of P200,000. Purchase returns with debitmemo amounted to P400,000.

There are two type of accounting systems being used in business. One is cash system and other is…

. Under accrual basis, what amount should be reported as gross purchases? a. 5,250,000 b. 5,950,000 c. 5,750,000 d. 5,650,000 3. What amount should be reported as cost of goods sold under accrual basis? a. 5,550,000 b. 5,750,000 c. 4,950,000 d. 5,350,000

. Under accrual basis, what amount should be reported as gross purchases? a. 5,250,000 b. 5,950,000 c. 5,750,000 d. 5,650,000 3. What amount should be reported as cost of goods sold under accrual basis? a. 5,550,000 b. 5,750,000 c. 4,950,000 d. 5,350,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

2. Under accrual basis, what amount should be reported as gross purchases?

a. 5,250,000

b. 5,950,000

c. 5,750,000

d. 5,650,000

3. What amount should be reported as cost of goods sold under accrual basis?

a. 5,550,000

b. 5,750,000

c. 4,950,000

d. 5,350,000

Calapan Company provided the following data:
January 1
December 31
1,200,000
1,600,000
Inventory
Coat of goods sold
Accounts receivable
Accounts payable
5,500,000
1,200,000
1,350,000
1,500,000
1,850,000
During the current year, accounts written off amounted to
P100,000. Sales returns with credit memo totaled P250,000.
Cash refund to customers for returned goods of P50,000 was
debited to accounts receivable.
Cash receipts from customers after P500,000 sales discounts
amounted to P8,000,000.
Cash payments to trade creditors totaled P5,000,000 after
purchase discounts of P200,000. Purchase returns with debit
memo amounted to P400,000.

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