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Determine the following by preparing a multi-step form of SCI.  Bad debts expense Gross Profit Total Expenses Net Income/Loss

Determine the following by preparing a multi-step form of SCI.  Bad debts expense Gross Profit Total Expenses Net Income/Loss

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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Determine the following by preparing a multi-step form of SCI. 

Bad debts expense
Gross Profit
Total Expenses
Net Income/Loss

The following are taken from the record of ABM Company for the year ended December 31, 20X2: DEBIT CREDIT Sales P764,985 8,200 Purchase Discount Purchase Returns and allowances 5,465 Purchases 459,990 Freight-in Sales discount 9,180 13,300 5,455 25,000 Sales returns and allowances Depreciation Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense 10,000 80,000 55,000 35,000 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 general and administrative expense.
Transcribed Image Text:The following are taken from the record of ABM Company for the year ended December 31, 20X2: DEBIT CREDIT Sales P764,985 8,200 Purchase Discount Purchase Returns and allowances 5,465 Purchases 459,990 Freight-in Sales discount 9,180 13,300 5,455 25,000 Sales returns and allowances Depreciation Expense Amortization expense Salaries Expense Utilities Expense Advertising Expense Rent Expense 10,000 80,000 55,000 35,000 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 general and administrative expense.
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