1. For the year ended December 31, 2020, PAMA Company reported the following amounts: Inventory, 1/1/20 ? Inventory, 12/31/20 125,000 Purchases 800,000 Purchase Discounts 30,000 Freight In 105,000 Purchase Returns and 39,000 Allowances Sales Returns and Allowances 75,000 Sales Discounts 25,000 Operating Expenses P150,000 Operating Expenses is 10% of net sales. On the other hand, gross profit is 35% of the net sales. Determine the amount of Gross Sales A. P1,600,000 B. P1,800,000 C. P2,100,000 D. P1,200,000

1. For the year ended December 31, 2020, PAMA Company reported the following amounts: Inventory, 1/1/20 ? Inventory, 12/31/20 125,000 Purchases 800,000 Purchase Discounts 30,000 Freight In 105,000 Purchase Returns and 39,000 Allowances Sales Returns and Allowances 75,000 Sales Discounts 25,000 Operating Expenses P150,000 Operating Expenses is 10% of net sales. On the other hand, gross profit is 35% of the net sales. Determine the amount of Gross Sales A. P1,600,000 B. P1,800,000 C. P2,100,000 D. P1,200,000

Name: 1. For the year ended December 31, 2020, PAMA Company reported the fo
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Description: 1. For the year ended December 31, 2020, PAMA Company reported the followingamounts:Inventory, 1/1/20?Inventory, 12/31/20125,000Purchases800,000Purchase Discounts30,000Freight In105,000Purchase Returns and39,000AllowancesSales Returns and Allowances

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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