2:31Based on actual physical count, inventorybalance are as follows:January 1, 2019December31, 2019P25455P20765|Bad debts expense is 4% of net sales.Classify the bad debt expense as a generaland administrative expense.1. Determine the following:a.Net salesNet purchasesCost of Goods soldb.С.d. Bad debts expense2. Prepare a single-step SCI3. Prepare a multi-step SCI given thefollowing additional information:a. Depreciation of P5000 isfor computer equipmentused in the administrativeofficeb. Amortization is attributedto office leaseholdimprovements.C. 40% of salaries areattributed to salespersonnel.d. Utilities for the storerepresent 35% of utilitiesexpensee. Rent for the office space isP20000.B IU AlillII 2:31 GileoThe following are taken from the records ofDebitCreditSalesP764985Purchase Discount8200Purchase returns and allowances5465Purchases159990Freight-in9180Sales Discount13300Sales returns and allowances5455Depreciation expenseAmortization expense2500010000Salarics cxpcnscUtilities expenseAdvertising cxpenscRent expense80000550003500060000Interest incomc5440Interest expense5677Gain on salc of PPE5465Bad debts expense?Humility Company for the year endedDecember 31, 2019:Based on actual physical count, inventorybalance are as follows:January 1, 2019December31, 2019P25455P20765Bad debts expense is 4% of net sales.Classify the bad debt expense as a generaland administrative expense.1. Determine the following:а.Net salesb. Net purchasesIU AIIB

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Business

Accounting

1. Determine the following: a. Net sales b. Net purchases

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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Question

2:31
Based on actual physical count, inventory
balance are as follows:
January 1, 2019
December31, 2019
P25455
P20765
|
Bad debts expense is 4% of net sales.
Classify the bad debt expense as a general
and administrative expense.
1. Determine the following:
a.
Net sales
Net purchases
Cost of Goods sold
b.
С.
d. Bad debts expense
2. Prepare a single-step SCI
3. Prepare a multi-step SCI given the
following additional information:
a. Depreciation of P5000 is
for computer equipment
used in the administrative
office
b. Amortization is attributed
to office leasehold
improvements.
C. 40% of salaries are
attributed to sales
personnel.
d. Utilities for the store
represent 35% of utilities
expense
e. Rent for the office space is
P20000.
B I
U A
lill
II

2:31 G
ileo
The following are taken from the records of
Debit
Credit
Sales
P764985
Purchase Discount
8200
Purchase returns and allowances
5465
Purchases
159990
Freight-in
9180
Sales Discount
13300
Sales returns and allowances
5455
Depreciation expense
Amortization expense
25000
10000
Salarics cxpcnsc
Utilities expense
Advertising cxpensc
Rent expense
80000
55000
35000
60000
Interest incomc
5440
Interest expense
5677
Gain on salc of PPE
5465
Bad debts expense
?
Humility Company for the year ended
December 31, 2019:
Based on actual physical count, inventory
balance are as follows:
January 1, 2019
December31, 2019
P25455
P20765
Bad debts expense is 4% of net sales.
Classify the bad debt expense as a general
and administrative expense.
1. Determine the following:
а.
Net sales
b. Net purchases
I
U A
II
B

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