Question 23Based on the following information provided by Max Trading Company on December 31, 2000, the end of its accountingperiod:P 780,00015,00019,000420,00012,0008,0002,00050,00080,000120,00016,000SalesSales Returns & AllowancesSales DiscountPurchasesFreight inPurchase Returns & AllowancesPurchase DiscountBeginning InventoryEnding InventoryOperating expensesOther IncomeOther Expenses3,000How much is the net profit from operations?O. P367,000ObP 234,000P 356,000P 370,000

Solution.. Net sales = Sales - sales return and allowances - sales discount = P780,000 -…

Question 23 Based on the following information provided by Max Trading Company on December 31, 2000, the end of its accounting period: Sales Sales Returns & Allowances P 780,000 15,000 19,000 420,000 12,000 8,000 2,000 50,000 s0,000 120,000 16,000 Sales Discount Purchases Freight in Purchase Returns & Allowances Purchase Discount Beginning Inventory Ending Inventory Operating expenses Other Income Other Expenses 3,000 How much is the net profit from operations? Oa P367,000 P 234,000 P 356.000 P 370,000

Question 23 Based on the following information provided by Max Trading Company on December 31, 2000, the end of its accounting period: Sales Sales Returns & Allowances P 780,000 15,000 19,000 420,000 12,000 8,000 2,000 50,000 s0,000 120,000 16,000 Sales Discount Purchases Freight in Purchase Returns & Allowances Purchase Discount Beginning Inventory Ending Inventory Operating expenses Other Income Other Expenses 3,000 How much is the net profit from operations? Oa P367,000 P 234,000 P 356.000 P 370,000

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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