determine the followingd. bad debts expense Prepare a function of expense SCI. Additional information:a. Depreciation of P5,000 is for computer equipment used in the administrativeb. 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. Problem 5: Comprehensive ProblemThe following are taken from the records of ABC Company for the year ended December31, 20X2:DebitCreditSalesP764,985Purchase discount8,200Purchase returns and allowances5,465Purchases459,990Freight-in9,180Sales discount13,300Sales returns and allowances5,455Depreciation expenseAmortization expense25,00010,000Salaries expense80,000Utilities expense55,000Advertising expense35,000Rent expense60,000Interest income5,444Interest expenseGain on sale of PPEBad debts expense5,6775,465???Based on actual physical count, inventory balance are as follows:January 1, 20X2P25,455December 31, 20x2P20,765Bad debts expense is 4% of net sales. Classify the bad debt expense as a general andadministrative expense.1.Determine the following:a.Net salesb.Net purchasesC.Cost of goods soldd.Bad debts expense2.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 administrativeoffice.a.b.Amortization is attributed to office leasehold improvements.40% of salaries are attributed to sales personnel.C.d.Utilities for the store represent 35% of utilities expense.Rent for the office space is P20,000.e.

The income statement represents the net income or net loss calculated by deducting the expenses from…

Answered: determine the following d. bad debts…

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

d. bad debts expense

Prepare a function of expense SCI. Additional information:
a. Depreciation of P5,000 is for computer equipment used in the administrative
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.

Problem 5: Comprehensive Problem
The following are taken from the records of ABC Company for the year ended December
31, 20X2:
Debit
Credit
Sales
P764,985
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
Gain on sale of PPE
Bad debts expense
5,677
5,465
???
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
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.
40% of salaries are attributed to sales personnel.
C.
d.
Utilities for the store represent 35% of utilities expense.
Rent for the office space is P20,000.
e.

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