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Cost of sales 800,000 Additional information and data for adjustments follow: 1) The company sells at a markup of 20%based on sales. All customers are within a four-day delivery area. 2) On December 27,2021, dean authorized a customer to return, for full credit, goods shipped and billed at P30,000 on December 14,2021. The retumed goods were received by dean on January 4,2022, and a P30,000 credit memo was issued on the same date. The goods were not included in the ending of inventory. 3) A P40,000 shipment of goods to a customer on December 31,2021, terms FOB shipping point, 2/10, n/30 was not recorded as a sale in 2021. The goods were excluded in the ending inventory in 2021. 4) A P50,000 shipment of goods to a customer on December 30,2021, terms FOB destination, 5/10, n/30 was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021 5) A P20,000 shipment of goods to a customer on December 29,2021, terms FOB shipping point, 3/10, n/30, was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021. 6) Based on the aging of the accounts receivable, the allowance for doubtful accounts would be P15,000. Based on the above data, compute for the following: 1. Adjusted balance of accounts receivable as of December 31,2021. a. P350,000 b. P260,000 2. Merchandise inventory as of December 31,2021 c. P289,000 d. P290,000 a. P376,000 c. P408,000 b. P432,000 d. P440,000 3. Net sales for the year 2021 a. P990,000 c. P1,010,000 b. P960,000 d. P910,000

Cost of sales 800,000 Additional information and data for adjustments follow: 1) The company sells at a markup of 20%based on sales. All customers are within a four-day delivery area. 2) On December 27,2021, dean authorized a customer to return, for full credit, goods shipped and billed at P30,000 on December 14,2021. The retumed goods were received by dean on January 4,2022, and a P30,000 credit memo was issued on the same date. The goods were not included in the ending of inventory. 3) A P40,000 shipment of goods to a customer on December 31,2021, terms FOB shipping point, 2/10, n/30 was not recorded as a sale in 2021. The goods were excluded in the ending inventory in 2021. 4) A P50,000 shipment of goods to a customer on December 30,2021, terms FOB destination, 5/10, n/30 was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021 5) A P20,000 shipment of goods to a customer on December 29,2021, terms FOB shipping point, 3/10, n/30, was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021. 6) Based on the aging of the accounts receivable, the allowance for doubtful accounts would be P15,000. Based on the above data, compute for the following: 1. Adjusted balance of accounts receivable as of December 31,2021. a. P350,000 b. P260,000 2. Merchandise inventory as of December 31,2021 c. P289,000 d. P290,000 a. P376,000 c. P408,000 b. P432,000 d. P440,000 3. Net sales for the year 2021 a. P990,000 c. P1,010,000 b. P960,000 d. P910,000

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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Dean Company's balances as at December 31,2021, before year-end adjustment follow: Debit Credit Accounts receivable P300,000 Adjustments P3,000 Merchandise inventory 400,000 Net sales 1,000,000 Cost of sales 800,000 Additional information and data for adjustments follow: 1) The company sells at a markup of 20%based on sales. All customers are within a four-day delivery area. 2) On December 27,2021, dean authorized a customer to return, for full credit, goods shipped and billed at P30,000 on December 14,2021. The returned goods were received by dean on January 4,2022, and a P30,000 credit memo was issued on the same date. The goods were not included in the ending of inventory. 3) A P40,000 shipment of goods to a customer on December 31,2021, terms FOB shipping point, 2/10, n/30 was not recorded as a sale in 2021. The goods were excluded in the ending inventory in 2021. 4) A P50,000 shipment of goods to a customer on December 30,2021, terms FOB destination, 5/10, n/30 was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021 5) A P20,000 shipment of goods to a customer on December 29,2021, terms FOB shipping point, 3/10, n/30, was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021. 6) Based on the aging of the accounts receivable, the allowance for doubtful accounts would be P15,000. Based on the above data, compute for the following: 1. Adjusted balance of accounts receivable as of December 31,2021. c. P289,000 a. P350,000 b. P260,000 d. P290,000 2. Merchandise inventory as of December 31,2021 a. P376,000 c. P408,000 b. P432,000 d. P440,000 3. Net sales for the year 2021 a. P990,000 c. P1,010,000 b. P960,000 d. P910,000 4. Cost of sales for the year 2021 a. P808,000 c. P768,000 b. P792,000 d. P824,000 5. Net realizable value of accounts receivable as of December 31,2021 c. P245,000 d. P278,000 a. P272,000 b. P270,000
Transcribed Image Text:Dean Company's balances as at December 31,2021, before year-end adjustment follow: Debit Credit Accounts receivable P300,000 Adjustments P3,000 Merchandise inventory 400,000 Net sales 1,000,000 Cost of sales 800,000 Additional information and data for adjustments follow: 1) The company sells at a markup of 20%based on sales. All customers are within a four-day delivery area. 2) On December 27,2021, dean authorized a customer to return, for full credit, goods shipped and billed at P30,000 on December 14,2021. The returned goods were received by dean on January 4,2022, and a P30,000 credit memo was issued on the same date. The goods were not included in the ending of inventory. 3) A P40,000 shipment of goods to a customer on December 31,2021, terms FOB shipping point, 2/10, n/30 was not recorded as a sale in 2021. The goods were excluded in the ending inventory in 2021. 4) A P50,000 shipment of goods to a customer on December 30,2021, terms FOB destination, 5/10, n/30 was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021 5) A P20,000 shipment of goods to a customer on December 29,2021, terms FOB shipping point, 3/10, n/30, was recorded as a sale in 2021. The goods were not included in the ending inventory in 2021. 6) Based on the aging of the accounts receivable, the allowance for doubtful accounts would be P15,000. Based on the above data, compute for the following: 1. Adjusted balance of accounts receivable as of December 31,2021. c. P289,000 a. P350,000 b. P260,000 d. P290,000 2. Merchandise inventory as of December 31,2021 a. P376,000 c. P408,000 b. P432,000 d. P440,000 3. Net sales for the year 2021 a. P990,000 c. P1,010,000 b. P960,000 d. P910,000 4. Cost of sales for the year 2021 a. P808,000 c. P768,000 b. P792,000 d. P824,000 5. Net realizable value of accounts receivable as of December 31,2021 c. P245,000 d. P278,000 a. P272,000 b. P270,000
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