An analysis of incomplete records of MAYA INCORPORATED produced the following information applicable to 2013: Summary of cash transactions were as follows: CASH RECEIPTS: Collection on accounts receivable 27,600,000 Collection on notes receivable 2,400,000 Purchase returns and allowances (note a) 500,000 Recovery of previously written off accounts (not included in the collections on accounts receivable above, note b) 70,000 CASH DISBURSEMENT: Payments on accounts payable 13,200,000 Payments of notes payable, trade 2,300.000 Sales returns and allowances (note c) 400,000 Insurance 700,000 Salaries. 10,000,000 Other expenses 1,500,000 Dividends. 1,000,000 Additional information: a) Total purchase returns and allowances amounted to P800,000. Purchase discounts taken was at P350,000. b) Write-off of accounts receivable during the year amounted to P310,000. c) Total sales returns and allowances amounted to P1,200,000. Sales discounts taken b customers was at P1,800,000. d) The following information regarding increases and decreases in relevant balance sheet accounts were also ascertained: ACCOUNT INCREASESACCOUNT DECREASES Cash Accounts receivable 1,400.000 Inventory 1,000,000 Allow for bad debts. 180,000 Notes receivable 600,000 Accounts payable 850,000 Accrued salaries 330,000 Prepaid insurance 200,000 Notes payable-trade 950,000 Accum. Depr. 900,000
An analysis of incomplete records of MAYA INCORPORATED produced the following information applicable to 2013: Summary of cash transactions were as follows: CASH RECEIPTS: Collection on accounts receivable 27,600,000 Collection on notes receivable 2,400,000 Purchase returns and allowances (note a) 500,000 Recovery of previously written off accounts (not included in the collections on accounts receivable above, note b) 70,000 CASH DISBURSEMENT: Payments on accounts payable 13,200,000 Payments of notes payable, trade 2,300.000 Sales returns and allowances (note c) 400,000 Insurance 700,000 Salaries. 10,000,000 Other expenses 1,500,000 Dividends. 1,000,000 Additional information: a) Total purchase returns and allowances amounted to P800,000. Purchase discounts taken was at P350,000. b) Write-off of accounts receivable during the year amounted to P310,000. c) Total sales returns and allowances amounted to P1,200,000. Sales discounts taken b customers was at P1,800,000. d) The following information regarding increases and decreases in relevant balance sheet accounts were also ascertained: ACCOUNT INCREASESACCOUNT DECREASES Cash Accounts receivable 1,400.000 Inventory 1,000,000 Allow for bad debts. 180,000 Notes receivable 600,000 Accounts payable 850,000 Accrued salaries 330,000 Prepaid insurance 200,000 Notes payable-trade 950,000 Accum. Depr. 900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:An analysis of incomplete records of MAYA INCORPORATED produced the following
information applicable to 2013:
Summary of cash transactions were as follows:
CASH RECEIPTS:
Collection on accounts receivable
27,600,000
Collection on notes receivable
2,400,000
Purchase returns and allowances (note a)
500,000
Recovery of previously written off accounts
(not included in the collections on
accounts receivable above, note b)
70.000
CASH DISBURSEMENT:
Payments on accounts payable
13,200,000
Payments of notes payable, trade
2,300,000
Sales returns and allowances (note c)
400,000
Insurance
700,000
Salaries.
10,000,000
Other expenses
1,500,000
Dividends.
1,000,000
Additional information :
a) Total purchase returns and allowances amounted to P800,000. Purchase discounts
taken was at P350.000.
b) Write-off of accounts receivable during the year amounted to P310,000.
c) Total sales returns and allowances amounted to P1,200,000. Sales discounts taken by
customers was at P1,800,000.
d) The following information regarding increases and decreases in relevant balance
sheet accounts were also ascertained:
ACCOUNT INCREASESACCOUNT DECREASES
Cash
Accounts receivable
1,400,000
Inventory
1,000,000
Allow for bad debts.
180,000
Notes receivable
600,000
Accounts payable
850,000
Accrued salaries
330,000
Prepaid insurance
200,000
Notes payable-trade
950,000
Accum. Depr.
900,000
Determine the amount of gross profit under the accrual basis.
A. P14,690,000
B. P14,780,000
C. P14,810,000
D. P14,920,000
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