Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000. How much cash was paid on accounts payable? a. P4,400,000 c. P3,500,000 b. P4,900,000 d. P4,000,000
Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000. How much cash was paid on accounts payable? a. P4,400,000 c. P3,500,000 b. P4,900,000 d. P4,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted.
The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000.
How much cash was paid on accounts payable?
a. P4,400,000 c. P3,500,000
b. P4,900,000 d. P4,000,000
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