Accounts Receivable on 1 January were P412,800, and on 31 December P524,400. During the year P2,684,500 was received from sales after allowing a cash discount of P17,420. Accounts Receivable of P34,840 were written off as bad during the year. What is the amount of Gross Sales? P2,778,680 P2,813,520 P2,848,360
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
