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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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

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