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Debit Credit Sales P764,985 Purchase discount 8,200 Purchase returns and allowances Purchases 5,465 459,990 Freight-in 9,180 Sales discount 13,300 Sales returns and allowances 5,455 Depreciation expense Amortization expense 25,000 10,000 Salaries expense 80,000 Utilities expense 55,000 Advertising expense Rent expense 35,000 60,000 Interest income Interest expense 5,444 5,677 Gain on sale of PPE 5,465 Bad debts expense sed on actual physical count, inventory balance are as follows: January 1, 20X2 December 31, 20X2 P25,455 P20,765 d debts expense is 4% of net sales. Classify the bad debt expense as a general and trative expense.. termine the following: Net sales Net purchases Chapter 2: Statement of Comprehensive income 55

Debit Credit Sales P764,985 Purchase discount 8,200 Purchase returns and allowances Purchases 5,465 459,990 Freight-in 9,180 Sales discount 13,300 Sales returns and allowances 5,455 Depreciation expense Amortization expense 25,000 10,000 Salaries expense 80,000 Utilities expense 55,000 Advertising expense Rent expense 35,000 60,000 Interest income Interest expense 5,444 5,677 Gain on sale of PPE 5,465 Bad debts expense sed on actual physical count, inventory balance are as follows: January 1, 20X2 December 31, 20X2 P25,455 P20,765 d debts expense is 4% of net sales. Classify the bad debt expense as a general and trative expense.. termine the following: Net sales Net purchases Chapter 2: Statement of Comprehensive income 55

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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The following are taken from the records of ABC Company for the year ended December 31, 20X2: Debit Credit P764,985 Sales Purchase discount 8,200 Purchase returns and allowances 5,465 Purchases 459,990 Freight-in 9,180 Sales discount 13,300 Sales returns and allowances 5,455 Depreciation expense Amortization expense 25,000 10,000 Salaries expense 80,000 Utilities expense 55,000 Advertising expense 35,000 Rent expense 60,000 Interest income 5,444 Interest expense 5,677 Gain on sale of PPE 5,465 Bad debts expense ??? 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 a general and administrative expense. 1. Determine the following: a. Net sales b. Net purchases Chapter 2: Statement of Comprehensive Income 55 C. Cost of goods sold d. Bad debts expense 2. Prepare a nature of expense SCI. 3. Prepare a function of expense SCI. Additional information: Depreciation of P5,000 is for computer equipment used in the administrative office. a. b. Amortization is attributed to office leasehold improvements. C. 40% of salaries are attributed to sales personnel. d. Utilities for the store represent 35% of utilities expense. e Rent for the office space is P20,000.
Transcribed Image Text:The following are taken from the records of ABC Company for the year ended December 31, 20X2: Debit Credit P764,985 Sales Purchase discount 8,200 Purchase returns and allowances 5,465 Purchases 459,990 Freight-in 9,180 Sales discount 13,300 Sales returns and allowances 5,455 Depreciation expense Amortization expense 25,000 10,000 Salaries expense 80,000 Utilities expense 55,000 Advertising expense 35,000 Rent expense 60,000 Interest income 5,444 Interest expense 5,677 Gain on sale of PPE 5,465 Bad debts expense ??? 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 a general and administrative expense. 1. Determine the following: a. Net sales b. Net purchases Chapter 2: Statement of Comprehensive Income 55 C. Cost of goods sold d. Bad debts expense 2. Prepare a nature of expense SCI. 3. Prepare a function of expense SCI. Additional information: Depreciation of P5,000 is for computer equipment used in the administrative office. a. b. Amortization is attributed to office leasehold improvements. C. 40% of salaries are attributed to sales personnel. d. Utilities for the store represent 35% of utilities expense. e Rent for the office space is P20,000.
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