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At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales. What is the amount of sales for the year? [A] 2,750,000 [B] 2,050,000 [C] 2,650,000 [D] 700,000

At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales. What is the amount of sales for the year? [A] 2,750,000 [B] 2,050,000 [C] 2,650,000 [D] 700,000

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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At the beginning of the current year, B started a retail merchandise business. During the current year, the business paid trade creditors P2,000,000 in cash and suffered a net loss of P350,000. The ledger pre-closing balances at year-end included the following: Accounts receivable – P600,000; Accounts payable – P750,000; Capital (total investment in cash) – P2,000,000; Expenses (paid in cash) – P100,000; Merchandise (unadjusted debit balance) – P700,000. There were no withdrawals. All sales and purchases were on credit. The “Merchandise” account is debited for purchases and credited for sales.

What is the amount of sales for the year?

[A] 2,750,000

[B] 2,050,000

[C] 2,650,000

[D] 700,000

 

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