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Sky Company provided the following information at year-end: 2019 2018 Accounts receivable Allowance for doubtful accounts Allowance for sales returns 880,000 ( 10,000) ( 20,000) 800,000 ( 15,000) ( 25,000) Net realizable value 850,000 760,000 The entity reported doubtful accounts expense in 2019 of P30,000 and had products returned for credits totaling P15,000 at sale price. Gross sales for 2019 amounted to P6,150,000. 1. What amount of accounts receivable was written during 2019? a. 35,000 b. 30,000 c. 15,000 d. 10,000 2. What amount was collected from customers during 2019? a. 6,035,000 b. 6,070,000 c. 6,020,000 d. 6,100,000 3. What amount was recorded as estimated sales returns during 2019? a. 10,000 b. 15,000 20,000 d. с. 5,000 4. What amount was reported as net sales for 2019? a. 6,150,000 b. 6,140,000 c. 6,100,000 d. 6,135,000

Sky Company provided the following information at year-end: 2019 2018 Accounts receivable Allowance for doubtful accounts Allowance for sales returns 880,000 ( 10,000) ( 20,000) 800,000 ( 15,000) ( 25,000) Net realizable value 850,000 760,000 The entity reported doubtful accounts expense in 2019 of P30,000 and had products returned for credits totaling P15,000 at sale price. Gross sales for 2019 amounted to P6,150,000. 1. What amount of accounts receivable was written during 2019? a. 35,000 b. 30,000 c. 15,000 d. 10,000 2. What amount was collected from customers during 2019? a. 6,035,000 b. 6,070,000 c. 6,020,000 d. 6,100,000 3. What amount was recorded as estimated sales returns during 2019? a. 10,000 b. 15,000 20,000 d. с. 5,000 4. What amount was reported as net sales for 2019? a. 6,150,000 b. 6,140,000 c. 6,100,000 d. 6,135,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 5-20 (AICPA Adapted) Sky Company provided the following information at year-end: 2019 2018 Accounts receivable Allowance for doubtful accounts Allowance for sales returns 880,000 ( 10,000) ( 20,000) 800,000 ( 15,000) ( 25,000) Net realizable value 850,000 760,000 The entity reported doubtful accounts expense in 2019 of P30,000 and had products returned for credits totaling P15,000 at sale price. Gross sales for 2019 amounted to P6,150,000. 1. What amount of accounts receivable was written during 2019? a. 35,000 b. 30,000 c. 15,000 d. 10,000 2. What amount was collected from customers during 2019? a. 6,035,000 b. 6,070,000 c. 6,020,000 d. 6,100,000 3. What amount was recorded as estimated sales returns during 2019? a. 10,000 b. 15,000 20,000 d. с. 5,000 4. What amount was reported as net sales for 2019? а. 6,150,000 b. 6,140,000 c. 6,100,000 d. 6,135,000
Transcribed Image Text:Problem 5-20 (AICPA Adapted) Sky Company provided the following information at year-end: 2019 2018 Accounts receivable Allowance for doubtful accounts Allowance for sales returns 880,000 ( 10,000) ( 20,000) 800,000 ( 15,000) ( 25,000) Net realizable value 850,000 760,000 The entity reported doubtful accounts expense in 2019 of P30,000 and had products returned for credits totaling P15,000 at sale price. Gross sales for 2019 amounted to P6,150,000. 1. What amount of accounts receivable was written during 2019? a. 35,000 b. 30,000 c. 15,000 d. 10,000 2. What amount was collected from customers during 2019? a. 6,035,000 b. 6,070,000 c. 6,020,000 d. 6,100,000 3. What amount was recorded as estimated sales returns during 2019? a. 10,000 b. 15,000 20,000 d. с. 5,000 4. What amount was reported as net sales for 2019? а. 6,150,000 b. 6,140,000 c. 6,100,000 d. 6,135,000
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