d. Bad debts expense e. Gross Profit

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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The following are taken from the record of ABM Company for the year ended December 31,
20X2:
DEBIT
CREDIT
P784.985
8,200
5,465
Sales
Purchase Discount
Purchase Retums and allowances
Purchases
Freight-in
Sales discount
Sales returns and allowances
Depreciotion Expense
Amortization expense
Salaries Expense
Utilities Expense
Advertising Expense
Rent Expense
Interest Income
Interest Expense
Gain on sale of PPE
Bad Debts Expense
459,990
9,180
13,300
5,455
25,000
10,000
80,000
55,000
35,000
60,000
5,444
5,677
5.485
???
Based on actual physical count, Inventory balance are as follows:
January 1, 20X2
P25,455
December 31, 20X2
P20,765
Bad debts expense is 4% of net sales. Classify the bad debt expense as
general and adıministrative expense.
Transcribed Image Text:The following are taken from the record of ABM Company for the year ended December 31, 20X2: DEBIT CREDIT P784.985 8,200 5,465 Sales Purchase Discount Purchase Retums and allowances Purchases Freight-in Sales discount Sales returns and allowances Depreciotion Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense Interest Income Interest Expense Gain on sale of PPE Bad Debts Expense 459,990 9,180 13,300 5,455 25,000 10,000 80,000 55,000 35,000 60,000 5,444 5,677 5.485 ??? Based on actual physical count, Inventory balance are as follows: January 1, 20X2 P25,455 December 31, 20X2 P20,765 Bad debts expense is 4% of net sales. Classify the bad debt expense as general and adıministrative expense.
Determine the following by preparing a multi-step form of SCI.
a. Net Sales
b. Net Purchases
- C. Cost of goods sold
d. Bad debts expense
e. Gross Profit
f. Total Expenses
g. Net Income/Loss
Transcribed Image Text:Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases - C. Cost of goods sold d. Bad debts expense e. Gross Profit f. Total Expenses g. Net Income/Loss
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