What amount should be reported as sales on account? What is the net realizable value of accounts receivable at year-end?
What amount should be reported as sales on account? What is the net realizable value of accounts receivable at year-end?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Germany Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales.
During the year, the entity wrote off Php50,000 of uncollectible accounts.
Merchandise purchased amounted to Php9,000,000 and ending merchandise inventory was Php1,500,000. Goods were sold at 40% above cost.
The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php6,000,000.
What amount should be reported as sales on account?
What is the net realizable value of
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