Problem 5: Yasuo Company provided the following information for the current year. Cash Sales Gross 2,000,000 Returns and Allowances 100,000 Credit sales Gross 3,000,000 Discounts 150,000 Customers owed P1,00,000 on January 1 and P750,000 on December 31. The entity used direct write-off method for bad debts. No bad debts were recorded in the current year. Under the cash basis of accounting, what amount of sales revenue should be reported for the current year?

Problem 5: Yasuo Company provided the following information for the current year. Cash Sales Gross 2,000,000 Returns and Allowances 100,000 Credit sales Gross 3,000,000 Discounts 150,000 Customers owed P1,00,000 on January 1 and P750,000 on December 31. The entity used direct write-off method for bad debts. No bad debts were recorded in the current year. Under the cash basis of accounting, what amount of sales revenue should be reported for the current year?

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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