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, What is the total amount of purchases up to April 30? 1 760 000

, What is the total amount of purchases up to April 30? 1 760 000

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 13-15 (AICPA Adapted) On April 30, 2020, a fire damaged the office of Waterloo Company. The following balances were gathered from the general ledger on March 31, 2020: Accounts receivable Inventory - January 1 Accounts payable Sales Purchases 920,000 1,880,000 950,000 3,600,000 1,680,000 An examination of the April bank statement and canceled checks revealed checks written during the period April 1-30; 240,000 80,000 160,000 Accounts payable as of March 31 April merchandise shipments Еxрenses Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refund from a vendor for merchandise returned in April. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment, including P100,000 for shipments in transit on that date. * The average gross profit rate is 40%. * Inventory with a cost of P260,000 was for P140,000. salvaged and sold The balance of the inventory was a total loss. 378
Transcribed Image Text:Problem 13-15 (AICPA Adapted) On April 30, 2020, a fire damaged the office of Waterloo Company. The following balances were gathered from the general ledger on March 31, 2020: Accounts receivable Inventory - January 1 Accounts payable Sales Purchases 920,000 1,880,000 950,000 3,600,000 1,680,000 An examination of the April bank statement and canceled checks revealed checks written during the period April 1-30; 240,000 80,000 160,000 Accounts payable as of March 31 April merchandise shipments Еxрenses Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refund from a vendor for merchandise returned in April. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment, including P100,000 for shipments in transit on that date. * The average gross profit rate is 40%. * Inventory with a cost of P260,000 was for P140,000. salvaged and sold The balance of the inventory was a total loss. 378
, What is the total amount of purchases up to April 30? a. 1,760,000 b. 2,100,000 c. 2,020,000 d. 1,680,000
Transcribed Image Text:, What is the total amount of purchases up to April 30? a. 1,760,000 b. 2,100,000 c. 2,020,000 d. 1,680,000
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