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ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021?

ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021?

FINANCIAL ACCOUNTING
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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ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021?
Transcribed Image Text:ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021?
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