PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: P 920,000 1,880,000 950,000 3,600,000 1,680,000 Accounts receivable Inventory, 1/1/2021 Accounts payable Sales Purchases Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 April merchandise shipments Expenses Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. B. Customers acknowledged indebtedness of Pl,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment including, P100,000 for shipments in transit on that date. D. The average gross profit rate is 40%. E. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the inventory was a total loss. P 240,000 80,000 160,000 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?
PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: P 920,000 1,880,000 950,000 3,600,000 1,680,000 Accounts receivable Inventory, 1/1/2021 Accounts payable Sales Purchases Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 April merchandise shipments Expenses Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. B. Customers acknowledged indebtedness of Pl,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment including, P100,000 for shipments in transit on that date. D. The average gross profit rate is 40%. E. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the inventory was a total loss. P 240,000 80,000 160,000 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The
following balances were gathered from the general ledger on March 31, 2021:
P 920,000
Accounts receivable
Inventory, 1/1/2021
Accounts payable
Sales
1,880,000
950,000
3,600,000
Purchases
1,680,000
Additional information follows:
A. An examination of the April bank statement and canceled checks revealed checks
written during the period April 1 to 30 as follows:
Accounts payable, 3/31
April merchandise shipments
Expenses
Deposits during the same period amounted to P440,000 which consisted of collections
from customers with the exception of P20,000 refunds from a vendor for merchandise
returned in April.
B. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed
another P60,000 that will never be recovered. Of the acknowledged indebtedness,
P40,000 may prove uncollectible.
C. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000
for April merchandise shipment including, P100,000 for shipments in transit on that date.
D. The average gross profit rate is 40%.
E. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of
the inventory was a total loss.
P 240,000
80,000
160,000
30. What is the amount of sales from January 1, 2021 to April 30, 2021?
31. What is the amount of purchases from January 1, 2021 to April 30, 2021?
32. What is the amount of fire loss to be recognized on April 30, 2021?
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