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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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