Edrich Company is engaged in small export business. The Company maintains limitedrecords. Most of the company’s transaction are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from thecompany’s records; Accounts receivable 370,000 increase Notes receivable 200,000 decrease Accounts payable 150,000 decrease Notes payable-trade 200,000 increase Notes payable-bank 300,000 increase Sales returns (P50,000 was refunded) 80,000 Sales discounts 20,000 Purchase returns (P30,000 was refunded) 80,000 Purchase discounts 35,000 Accounts written-off 60,0000 Recovery of accounts written-off 18,000 Cash sales 300,000 Cash purchases 250,000 Cash receive from account customers 1,500,000 Cash payment to trade creditors 1,20,000 Question : What is the amount of gross sales? a) 1,780,000 b) 2,062,000 c) 2,080,000 d) 2,130,000
Edrich Company is engaged in small export business. The Company maintains limitedrecords. Most of the company’s transaction are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from thecompany’s records; Accounts receivable 370,000 increase Notes receivable 200,000 decrease Accounts payable 150,000 decrease Notes payable-trade 200,000 increase Notes payable-bank 300,000 increase Sales returns (P50,000 was refunded) 80,000 Sales discounts 20,000 Purchase returns (P30,000 was refunded) 80,000 Purchase discounts 35,000 Accounts written-off 60,0000 Recovery of accounts written-off 18,000 Cash sales 300,000 Cash purchases 250,000 Cash receive from account customers 1,500,000 Cash payment to trade creditors 1,20,000 Question : What is the amount of gross sales? a) 1,780,000 b) 2,062,000 c) 2,080,000 d) 2,130,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Edrich Company is engaged in small export business. The Company maintains limitedrecords. Most of the company’s transaction are summarized in a cash journal; non-cash
transactions are recorded by making memo entries. The following are abstracted from thecompany’s records;
Notes receivable 200,000 decrease
Accounts payable 150,000 decrease
Notes payable-trade 200,000 increase
Notes payable-bank 300,000 increase
Sales returns (P50,000 was refunded) 80,000
Sales discounts 20,000
Purchase returns (P30,000 was refunded) 80,000
Purchase discounts 35,000
Accounts written-off 60,0000
Recovery of accounts written-off 18,000
Cash sales 300,000
Cash purchases 250,000
Cash receive from account customers 1,500,000
Cash payment to trade creditors 1,20,000
Question :
What is the amount of gross sales?
a) 1,780,000
b) 2,062,000
c) 2,080,000
d) 2,130,000
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