Problem 14-16 (PHILCPA Adapted)Calapan Company provided the following data:January 1 December 311,200,0001,600,0005,500,000InventoryCost of goods soldAccounts receivableAccounts payable1,200,0001,350,0001,500,0001,850,000During the current year, accounts written off amounted toP100,000. Sales returns with credit memo totaled P250,000.Cash refund to customers for returned goods of P50,000 wasdebited to accounts receivable.Cash receipts from customers after P500,000 sales discountsamounted to P8,000,000.Cash payments to trade creditors totaled P5,000,000 afterpurchase discounts of P200,000. Purchase returns with debitmemo amounted to P400,000.1. Under accrual basis, what amount should be reportedas gross sales?a. 8,900,000b. 8,950,000c. 8,250,000d. 8,850,0002. Under accrual basis, what amount should be reportedas gross purchases?a. 5,250,000b. 5,950,000c. 5,750,000d. 5,650,0003. What amount should be reported as cost of goods soldunder accrual basis?a. 5,550,000b. 5,750,000c. 4,950,000d. 5,350,000403

Accrual Basis- Accrual accounting is founded on the idea of recording transactions as they happen.…

Problem 14-16 (PHILCPA Adapted) Calapan Company provided the following data: January 1 1,200,000 Inventory Cost of goods sold 5,500,000 Accounts receivable 1,200,000 Accounts payable 1,500,000 December 31 1,600,000 1,350,000 1.850.000

Problem 14-16 (PHILCPA Adapted) Calapan Company provided the following data: January 1 1,200,000 Inventory Cost of goods sold 5,500,000 Accounts receivable 1,200,000 Accounts payable 1,500,000 December 31 1,600,000 1,350,000 1.850.000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.1MBA

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