PT Bumi ordered 20 sets of tables and chairs to PT CBA. Price set per unit of Rp 5,000,000 with 10% VAT. If you use the accrual method of revenue recognition then the following is true: a. PT Bumi records the following journals: (D) Accounts Receivable Rp. 110,000,000 (K) Sales Rp 100,000,000 (K) VAT Out Rp 10,000,000 b. PT CBA records the following journals: (D) Accounts Receivable Rp. 110,000,000 (K) Sales Rp 100,000,000 (K) VAT Out Rp 10,000,000 c. PT Bumi records the following journals: (D) Cash Rp. 110,000,000 (K) Sales Rp 100,000,000 (K) VAT Out Rp 10,000,000 d. PT CBA records the following journals: (D) Cash Rp. 110,000,000 (K) Sales Rp 100,000,000 (K) VAT In Rp 10,000,000

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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PT Bumi ordered 20 sets of tables and chairs to PT CBA. Price set per unit of Rp 5,000,000 with 10% VAT. If you use the accrual method of revenue recognition then the following is true:
a. PT Bumi records the following journals:
(D) Accounts Receivable Rp. 110,000,000
(K) Sales Rp 100,000,000
(K) VAT Out Rp 10,000,000
b. PT CBA records the following journals:
(D) Accounts Receivable Rp. 110,000,000
(K) Sales Rp 100,000,000
(K) VAT Out Rp 10,000,000
c. PT Bumi records the following journals:
(D) Cash Rp. 110,000,000
(K) Sales Rp 100,000,000
(K) VAT Out Rp 10,000,000
d. PT CBA records the following journals:
(D) Cash Rp. 110,000,000
(K) Sales Rp 100,000,000
(K) VAT In Rp 10,000,000

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