FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text: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
Transcribed Image Text: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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