20212020CashР300,000840,000660,000100,00080,0001,130,000(110,000)P200,000580,000420,00050,000Accounts Receivable, netMerchandise InventoryPrepaid ExpensesLong-term InvestmentsLand, Buildings and FixturesAccumulated Depreciation600,000(50,000)Total Current AssetsP3,000,000P1,800,000Accounts PayableAccrued ExpensesDividends PayableNotes Payable – due 2023Ordinary SharesRetained EarningsTotal Liabilities and EquitiesP530,000140,00070,000500,0001,200,000560,000P440,000130,000900,000330,000P3,000,000P1,800,000Income StatementNet credit salesP6,400,0005,000,000P1,400,0001,000,000P400,000P4,000,0003,200,000P800,000520,000Cost of Goods SoldGross ProfitExpenses (including Income Taxes)Net IncomeP280,000Additional information:1. All accounts receivable and accounts payable are related to trade merchandise.Accounts payable recorded net and always are paid to take all of the discount allowed.3. The allowance for doubtful accounts at the end of the two years are the same. No receivableswere charged against the allowance during the year 2021.4. The proceeds from the note payable were used to finance a new store building.5. Capital stock was sold to provide additional working capital.2.Compute for the following:Amount from cash collected from accounts receivable during 2021.Cash payment on accounts payable during 2021.1.2.

Receivables are the legal obligations on the customers of the company which they require to pay in…

Answered: Compute for the following: 1. Amount…

Compute for the following: 1. Amount from cash collected from accounts receivable during 2021. 2. Cash payment on accounts payable during 2021.

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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