On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler operating in the region bought for cash all of the available feeds on July 18, 2020; amount of cash received was P1,120,000 gross of VAT. Franky remitted the value added tax due to the BIR within the month. What is the VAT payable paid by Franky for the month of July? O A. 34,285.71 O B. 0 C. 38,400 O D. 24,000

On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler operating in the region bought for cash all of the available feeds on July 18, 2020; amount of cash received was P1,120,000 gross of VAT. Franky remitted the value added tax due to the BIR within the month. What is the VAT payable paid by Franky for the month of July? O A. 34,285.71 O B. 0 C. 38,400 O D. 24,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On July 3, 2020, Franky purchased on
account specialty feeds worth
P800,000 net of VAT. A wholesaler
operating in the region bought for
cash all of the available feeds on July
18, 2020; amount of cash received
was P1,120,000 gross of VAT. Franky
remitted the value added tax due to
the BIR within the month. What is the
VAT payable paid by Franky for the
month of July?
O A. 34,285.71
В. О
О с 38,400
О D. 24,000

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