Gross profit rate based on sales- 20% Accounts Receivable, Dec. 31, 2020 - P1,200,000 Collections on accounts receivable during 2021 - P4,450,000 Cost of goods available for sale during 2021 - P6,700,000 Merchandise Inventory, Dec. 31, 2021 - P1,500,000 Of the total sales during the year, seventy-five percent (75%) were made on account.
Gross profit rate based on sales- 20% Accounts Receivable, Dec. 31, 2020 - P1,200,000 Collections on accounts receivable during 2021 - P4,450,000 Cost of goods available for sale during 2021 - P6,700,000 Merchandise Inventory, Dec. 31, 2021 - P1,500,000 Of the total sales during the year, seventy-five percent (75%) were made on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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47.You are given the following information relating to Boy Band Trading:
Gross profit rate based on sales- 20%
Collections on accounts receivable during 2021 - P4,450,000
Cost of goods available for sale during 2021 - P6,700,000
Merchandise Inventory, Dec. 31, 2021 - P1,500,000
Of the total sales during the year, seventy-five percent (75%) were made on account.
What was the company’s Accounts Receivable balance at December 31, 2021?
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