doubtful aceounts estimated at 5% of eredit sales A What amount should be reported as net realiaable value eurrent year. The entity established an allowance for Germany Company started business at the beginning of Problem 4-16 (PHILCPA Adapted) During the year, the entity wrote off P60,000 of uncolleetible aunta Farther analyain showed that merchandise purchased amounted to P9,000,000 and ending merchandise inventory wa P1,500,000. Goode were sold at 40% above cost. The total sales eomprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales amounted to P6,000,000. 1. What amount should be reported as cost of goods sold 7,500,000 5,400,000 e 3,00,000 d. 6,900,000 2 What amount should be reported as sales on account 10,500,000 &18,750,000 . 12,000,000 d. 8400,000 d accounts receivable at yesr-end? 1,980,000 2,350,000 C. 1900,000 4. 2,400,000
doubtful aceounts estimated at 5% of eredit sales A What amount should be reported as net realiaable value eurrent year. The entity established an allowance for Germany Company started business at the beginning of Problem 4-16 (PHILCPA Adapted) During the year, the entity wrote off P60,000 of uncolleetible aunta Farther analyain showed that merchandise purchased amounted to P9,000,000 and ending merchandise inventory wa P1,500,000. Goode were sold at 40% above cost. The total sales eomprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales amounted to P6,000,000. 1. What amount should be reported as cost of goods sold 7,500,000 5,400,000 e 3,00,000 d. 6,900,000 2 What amount should be reported as sales on account 10,500,000 &18,750,000 . 12,000,000 d. 8400,000 d accounts receivable at yesr-end? 1,980,000 2,350,000 C. 1900,000 4. 2,400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:a What amount ahould be reported as net realizable value
current year. The entity established an allowance for
Germany Company started businens at the beginning of
During the year, the entity wrote off P50,000 of uncollectible
Problem 4-16 (PHILCPA Adapted)
During the year, the entity wrote off P50,000 of uncolleetible
accoanta
Farther analyeis showed that merchandise purchased
amounted to P9,000,000 and ending merchandise inventory
was P1,500,000. Goods were sold at 40% above cost.
The total sales comprised 80% sales on account and 20% caah
sales. Total collections from customers, excluding cash sales,
amounted to P6,000,000,
1. What amount should be reported as cost of goods sold?
7,500,000
b. 5,400,000
e 3,600,000
d. 6,900,000
2 What amount ahould be reported as sales on account
L 10,500,000
18,750,000
e. 12,000,000
d. 8,400,000
of accounta receivable at year-end?
L 1,980,000
b. 2,350,000
e 1,930,000
d. 2,400,000
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