January 1, 2021 December 31, 2021 Physical inventory, at cost |Net sales |Cost of goods sold |Accounts receivable - trade Accounts payable - trade Notes receivable - trade |Notes payable - trade 600,000 1,000,000 4,000,000 ? 2,400,000 ? 1,200,000 1,350,000 1,500,000 1,850,000 525,000 370,000 300,000 200,000 In 2021, accounts written off amounted to P100,000. Sales returns were P150,000 and purchase returns were P80,000. Collections from customers were P6,000,000, after deducting sales discounts of P200,000; while payments to trade creditors were P4,000,000, after deducting purchase discounts of P300,000.
January 1, 2021 December 31, 2021 Physical inventory, at cost |Net sales |Cost of goods sold |Accounts receivable - trade Accounts payable - trade Notes receivable - trade |Notes payable - trade 600,000 1,000,000 4,000,000 ? 2,400,000 ? 1,200,000 1,350,000 1,500,000 1,850,000 525,000 370,000 300,000 200,000 In 2021, accounts written off amounted to P100,000. Sales returns were P150,000 and purchase returns were P80,000. Collections from customers were P6,000,000, after deducting sales discounts of P200,000; while payments to trade creditors were P4,000,000, after deducting purchase discounts of P300,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
CARDO Company suspects that there is missing inventory in its warehouse at December 31, 2021. All sales and purchases were made on account. Also, the gross profit rate based on net sales is consistent every year. To aid in your investigation, you obtained the following:
How much is the cost of sales based on the historical gross profit rate?
Transcribed Image Text:January 1, 2021
December 31, 2021
Physical inventory, at cost
Net sales
|Cost of goods sold
Accounts receivable - trade
Accounts payable - trade
Notes receivable - trade
Notes payable - trade
600,000
1,000,000
4,000,000
?
2,400,000
?
1,200,000
1,350,000
1,500,000
1,850,000
525,000
370,000
300,000
200,000
In 2021, accounts written off amounted to P100,000. Sales returns were P150,000 and
purchase returns were P80,000. Collections from customers were P6,000,000, after
deducting sales discounts of P200,000; while payments to trade creditors were
P4,000,000, after deducting purchase discounts of P300,000.
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