Account titles Balance Account titles Balance P 5,555 13,300 Sales retum Sales P 800,050 Purchases Purchase return and allowances Sales discount 470,650 20,000 Depreciation Expense Amortization Expense Advertising Expense Purchase discount 5,465 10,500 35,000 2% of Purchases Freight Out Gain on sale of PPE 5,500 Interest Income 4,256 4,275 9,080 Salaries Expense Freight In Utilities Expense Decrease in Inventory 80,000 60,000 3% of gross sales 55,000 Rent Expense 4,570 Bad Debts Additional information: a) Depreciation of P5,000 is for computer equipment used in the Sales Department. b) Amortization is attributed to office leasehold improvements. c) 30% of salaries are attributed to office personnel. d) Utilities for the store represents 70% of utilities expense. e) Rent for the office space is P20,000 Requirements: Determine the following: 1) Net sales 2) Net Purchases 3) Cost of Goods Sold Dabte Exn onse

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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Learning Task 2.1: SCI Preparation
Account titles
Balance
Account titles
Balance
Sales return
P 5,555
Sales
P 800,050
Purchases
Purchase return and
allowances
Sales discount
13,300
470,650
20,000
Depreciation Expense
Amortization Expense
5.465
10,500
Gain on sale of PPE
5,500
Advertising Expense
35,000
Interest Income
4,256
2% of Purchases Freight Out
Salaries Expense
Rent Expense
Purchase discount
4,275
9,080
Freight In
Utilities Expense
55,000
4,570
80,000
60,000
Decrease in Inventory
Bad Debts
3% of gross sales
Additional information:
a) Depreciation of P5,000 is for computer equipment used in the Sales Department.
b) Amortization is attributed to office leasehold improvements.
c) 30% of salaries are attributed to office personnel.
d) Utilities for the store represents 70% of utilities expense.
e) Rent for the office space
is P20,000
Requirements: Determine the following:
1) Net sales
2) Net Purchases
3) Cost of Goods Sold
4) Bad Debts Expense
5) Function of Step SCI
Transcribed Image Text:Learning Task 2.1: SCI Preparation Account titles Balance Account titles Balance Sales return P 5,555 Sales P 800,050 Purchases Purchase return and allowances Sales discount 13,300 470,650 20,000 Depreciation Expense Amortization Expense 5.465 10,500 Gain on sale of PPE 5,500 Advertising Expense 35,000 Interest Income 4,256 2% of Purchases Freight Out Salaries Expense Rent Expense Purchase discount 4,275 9,080 Freight In Utilities Expense 55,000 4,570 80,000 60,000 Decrease in Inventory Bad Debts 3% of gross sales Additional information: a) Depreciation of P5,000 is for computer equipment used in the Sales Department. b) Amortization is attributed to office leasehold improvements. c) 30% of salaries are attributed to office personnel. d) Utilities for the store represents 70% of utilities expense. e) Rent for the office space is P20,000 Requirements: Determine the following: 1) Net sales 2) Net Purchases 3) Cost of Goods Sold 4) Bad Debts Expense 5) Function of Step SCI
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