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Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00 P 100,000.00 P 150,000.00 P 20,000.00 P 5,000.00 P 10,000.00 Accounts receivable Advances from customers Cash purchases Purchases on account Merchandise inventory, Dec. 31, 2020 Sales expenses (80% paid) Cash advances to employees Bad debts expense Depreciation expense 01 If AA uses cash basis accounting, what would be its net income?

Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00 P 100,000.00 P 150,000.00 P 20,000.00 P 5,000.00 P 10,000.00 Accounts receivable Advances from customers Cash purchases Purchases on account Merchandise inventory, Dec. 31, 2020 Sales expenses (80% paid) Cash advances to employees Bad debts expense Depreciation expense 01 If AA uses cash basis accounting, what would be its net income?

FINANCIAL ACCOUNTING
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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Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00 P 100,000.00 P 150,000.00 P 20,000.00 Accounts receivable Advances from customers Cash purchases Purchases on account Merchandise inventory, Dec. 31, 2020 Sales expenses (80% paid) Cash advances to employees Bad debts expense 5,000.00 Depreciation expense P 10,000.00 Q1 If AA uses cash basis accounting, what would be its net income?
Transcribed Image Text:Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00 P 100,000.00 P 150,000.00 P 20,000.00 Accounts receivable Advances from customers Cash purchases Purchases on account Merchandise inventory, Dec. 31, 2020 Sales expenses (80% paid) Cash advances to employees Bad debts expense 5,000.00 Depreciation expense P 10,000.00 Q1 If AA uses cash basis accounting, what would be its net income?
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