75. King Company began the current year with accounts receivable of P1,000,000 and allowance for doubtful accounts of P80,000. During the current year, the following events occurred: Accounts written off 120,000 Cash Sale 500,000 Sales on account 3,000,000 200,000 Doubtful account expense recognized At the end of the current year, the entity showed a balance in accounts receivable of P1,680,000. Under cash basis, what amount should be reported as sales? a. 2,700,000 b. 2,200,000 c. 3,500,000 d. 3,320,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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75. King Company began the current year with accounts receivable of P1,000,000 and allowance for
doubtful accounts of P80,000.
During the current year, the following events occurred:
120,000
Accounts written off
Cash Sale
500,000
Sales on account
3,000,000
200,000
Doubtful account expense recognized
At the end of the current year, the entity showed a balance in accounts receivable of P1,680,000.
Under cash basis, what amount should be reported as sales?
а. 2,700,000
b. 2,200,000
с. 3,500,000
d. 3,320,000
Transcribed Image Text:75. King Company began the current year with accounts receivable of P1,000,000 and allowance for doubtful accounts of P80,000. During the current year, the following events occurred: 120,000 Accounts written off Cash Sale 500,000 Sales on account 3,000,000 200,000 Doubtful account expense recognized At the end of the current year, the entity showed a balance in accounts receivable of P1,680,000. Under cash basis, what amount should be reported as sales? а. 2,700,000 b. 2,200,000 с. 3,500,000 d. 3,320,000
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