P 832,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much cash was disbursed during 2020 for purchases of merchandise? *
P 744,300
P 747,000
P 832,500
P 879,300
![Celestine Co. started operations in January 2019. From your examination of Celestine's financial
statements, you were able to obtain the following information:
12/31/19 12/31/20
P 126,000 P 133,200
60,000
85,500
990,000
Inventory
Trade Receivable
85,800
Trade Payable
Sales
82,800
960,000
Additional information provides that Celestine paid its suppliers a total of P763,200 in 2019. In 2020,
accounts totaling P6,000 were written off as uncollectible. In addition, bad debts expense of P4,500
per year was recognized in 2019 and 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1e43bcd-4c58-4b0d-afd0-ed7b11b5e953%2F5d10be82-da6e-41aa-a137-dc1f29d4ec9d%2Fioccrjg_processed.png&w=3840&q=75)
Transcribed Image Text:Celestine Co. started operations in January 2019. From your examination of Celestine's financial
statements, you were able to obtain the following information:
12/31/19 12/31/20
P 126,000 P 133,200
60,000
85,500
990,000
Inventory
Trade Receivable
85,800
Trade Payable
Sales
82,800
960,000
Additional information provides that Celestine paid its suppliers a total of P763,200 in 2019. In 2020,
accounts totaling P6,000 were written off as uncollectible. In addition, bad debts expense of P4,500
per year was recognized in 2019 and 2020.
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