The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. Al other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis? *

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following balances were reported by Nagpapangap Company on December 31, 2020 and
2019:
2020: Accounts payable - P3,500,000; Notes payable - P4,000,000
2019: Accounts payable - P2,500,000; Notes payable - P1,500,000
On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. All
other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020
amounted to P11,000,000, after purchase discount of P250,000. During 2020, company
returned defective merchandise costing P500,000.
What is the amount of gross purchases for 2020 under the accrual basis? *
Transcribed Image Text:The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. All other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis? *
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