Walang Kayo Company provided the following data: 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000 12/31/2020 P1,000,000 Inventory Sales Cost of Goods Sold Accounts receivable- trade 1,350,000 1. 850.000 Accounts navable, trade 1. 500 .00O

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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Choices:

P6,550,000
P6,600,000
P6,350,000
P6,650,000
Walang Kayo Company provided the following data:
12/31/2020
P1,000,000
12/31/2019
P 600,000
4,000,000
2,400,000
1,200,000
Inventory
Sales
Cost of Goods Sold
Accounts receivable- trade
1,350,000
1,850,000
Accounts payable- trade
1,500,000
In 2020, 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 discount of P300,000.
Cash paid to customers for goods returned was P50,000. On this transaction accounts receivable is debited.
Under accrual basis, what amount should be reported as gross sales for the current year?
Transcribed Image Text:Walang Kayo Company provided the following data: 12/31/2020 P1,000,000 12/31/2019 P 600,000 4,000,000 2,400,000 1,200,000 Inventory Sales Cost of Goods Sold Accounts receivable- trade 1,350,000 1,850,000 Accounts payable- trade 1,500,000 In 2020, 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 discount of P300,000. Cash paid to customers for goods returned was P50,000. On this transaction accounts receivable is debited. Under accrual basis, what amount should be reported as gross sales for the current year?
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