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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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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Problem 14-16 (PHILCPA Adapted) Calapan Company provided the following data: January 1 December 31 1,200,000 1,600,000 5,500,000 Inventory Cost of goods sold Accounts receivable Accounts payable 1,200,000 1,350,000 1,500,000 1,850,000 During the current year, accounts written off amounted to P100,000. Sales returns with credit memo totaled P250,000. Cash refund to customers for returned goods of P50,000 was debited to accounts receivable. Cash receipts from customers after P500,000 sales discounts amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,000 after purchase discounts of P200,000. Purchase returns with debit memo amounted to P400,000. 1. Under accrual basis, what amount should be reported as gross sales? a. 8,900,000 b. 8,950,000 c. 8,250,000 d. 8,850,000 2. Under accrual basis, what amount should be reported as gross purchases? a. 5,250,000 b. 5,950,000 c. 5,750,000 d. 5,650,000 3. What amount should be reported as cost of goods sold under accrual basis? a. 5,550,000 b. 5,750,000 c. 4,950,000 d. 5,350,000 403
Transcribed Image Text:Problem 14-16 (PHILCPA Adapted) Calapan Company provided the following data: January 1 December 31 1,200,000 1,600,000 5,500,000 Inventory Cost of goods sold Accounts receivable Accounts payable 1,200,000 1,350,000 1,500,000 1,850,000 During the current year, accounts written off amounted to P100,000. Sales returns with credit memo totaled P250,000. Cash refund to customers for returned goods of P50,000 was debited to accounts receivable. Cash receipts from customers after P500,000 sales discounts amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,000 after purchase discounts of P200,000. Purchase returns with debit memo amounted to P400,000. 1. Under accrual basis, what amount should be reported as gross sales? a. 8,900,000 b. 8,950,000 c. 8,250,000 d. 8,850,000 2. Under accrual basis, what amount should be reported as gross purchases? a. 5,250,000 b. 5,950,000 c. 5,750,000 d. 5,650,000 3. What amount should be reported as cost of goods sold under accrual basis? a. 5,550,000 b. 5,750,000 c. 4,950,000 d. 5,350,000 403
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