18. Using the information in MC 17, underaccrual basis, what amount should bereported as gross purchases for the currentyear?a. 4,700,000O b. 4,350,000O c. 4,300,000O d. 4,000,000 17. Calapan Company provided the data inthe table below. In 2011, accounts written offamounted to P100,000. Sales returns withcredit memo amounted to P150,000 andpurchase returns, P50,000. Cash receiptsfrom customers after P200,000 discountstotaled P6,000,000, while cash payments totrade creditors amounted to P4,000,000after discounts of P300,000. Cash paid tocustomers for goods returned was P50,000.On this transaction, accounts receivable wasdebited.

Accrual basis of accounting says that all expenses incurred in the particular period shoul be…

Answered: 18. Using the information in MC 17,…

18. Using the information in MC 17, under accrual basis, what amount should be reported as gross purchases for the current year? O a. 4,700,000 Ob. 4,350,000 OC. 4,300,000 O d. 4,000,000

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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Question

18. Using the information in MC 17, under
accrual basis, what amount should be
reported as gross purchases for the current
year?
a. 4,700,000
O b. 4,350,000
O c. 4,300,000
O d. 4,000,000

17. Calapan Company provided the data in
the table below. In 2011, accounts written off
amounted to P100,000. Sales returns with
credit memo amounted to P150,000 and
purchase returns, P50,000. Cash receipts
from customers after P200,000 discounts
totaled P6,000,000, while cash payments to
trade creditors amounted to P4,000,000
after discounts of P300,000. Cash paid to
customers for goods returned was P50,000.
On this transaction, accounts receivable was
debited.

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