See the image below. Please provide some solutions so that I can verify that I solved the problem correctly. Question: The effect on 2018 net income of Lukas Company of its failure to record the CM involving transaction with Falcon amounted To substantiate the existence of the accounts receivable balances as at December 31, 2018, ofLUKAS COMPANY, you have decided to send confirmation requests to customers. Below is asummary of the confirmation replies together with the exceptions and audit findings. Gross profiton sales is 20%. The company is under the perpetual inventory method.BalanceName ofCustomer Per BooksCommentsFrom CustomersAudit FindingsP150,000 P90,000 was returned on December 30, Returned goods were receivedConcordia2018. Correct balance is P60,000.December 31, 2018.FalconP30,000 Your CM representing price adjustment The CM was taken up by Lukasdated December 28, 2018, cancels this.P144,000 You have overpriced us by P150. Correct The complaint is valid.Company in 2019.Lazaroprice should be P300.SilangP112,500 We received the goods only on January 6, Term is shipping point.2019.Shipped in 2018.P135,000 Balance was offset by our December Lukasshipment of your raw materials.Company creditedpayableP135,000 to record purchases.YakalaccountsforYakal is a supplier.

Net income is the income which is earned by the company during a period. The expenses which relate…

Answered: Question: The effect on 2018 net income…

Question: The effect on 2018 net income of Lukas Company of its failure to record the CM involving transaction with Falcon amounted

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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