The following information relates to ELEPHANT INC. for the year ended 2020:Cash purchases - grossP300,000Trade accounts payable - beginning500,000Trade accounts payable - ending400,000Trade notes payable decreased by200,000Cash payments on payables1,000,000Purchase return and discounts (inclusive of P15,000 receipts fromsuppliers)20,000Inventory increased by100,000Compute the cost of goods sold under accrual basis of accounting.A. P885,000B. P950,000C. P925,000D. P845,000

Name: The following information relates to ELEPHANT INC. for the year ended
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Description: The following information relates to ELEPHANT INC. for the year ended 2020:Cash purchases - grossP300,000Trade accounts payable - beginning500,000Trade accounts payable - ending400,000Trade notes payable decreased by200,000Cash payments on payables1

Solution: Credit purchases = Cash payments on payable - Decrease in trade accounts payable -…

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The following information relates to ELEPHANT INC. for the year ended 2020 Cash purchases - gross P300,000 Trade accounts payable - beginning 500,000 Trade accounts payable - ending 400,000 Trade notes payable decreased by 200,000 Cash payments on payables 1,000,000

The following information relates to ELEPHANT INC. for the year ended 2020 Cash purchases - gross P300,000 Trade accounts payable - beginning 500,000 Trade accounts payable - ending 400,000 Trade notes payable decreased by 200,000 Cash payments on payables 1,000,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
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1. The following information relates to WOLF CORP. for the year ended 2020: Cash sales gross P250,000 Trade accounts receivable - beginning 300,000 Trade accounts receivable - ending 200,000 Advances from customers increased by 80,000 Trade notes receivable increased by 150,000 Collections on receivables 500,000 Sales returns and discounts (inclusive of P5,000 payments to customers 10,000 Write-offs of accounts receivable 5,000 Recoveries of accounts receivable written-off (included in collections) 2,000 Trade notes receivable discounted (notes receivable was credited) 15,000 What is the net sales under accrual basis of accounting? A. P754,000 B. P787,000 C. P654,000 D. P733,000
The following information relates to ELEPHANT INC. for the year ended 2020: Cash purchases - gross P300,000 Trade accounts payable - beginning 500,000 Trade accounts payable - ending 400,000 Trade notes payable decreased by 200,000 Cash payments on payables 1,000,000 Purchase return and discounts (inclusive of P15,000 receipts from suppliers) 20,000 Inventory increased by 100,000 Compute the net purchases under accrual basis of accounting. A. P985,000 B. P1,050,000 C. P1,025,000 D. P945,000
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At January 1, 2024, Tarjee Inc. reported the following information on its statement of financial position: Accounts receivable $530,000 40,000 Allowance for expected credit losses ,40,000 During 2024, the company had the following summary transactions for receivables: Sales on account, $1,930,000; cost of goods sold, $1,061,500; return rate, 5% Selling price of goods returned, $76,000; cost of goods returned to inventory, $41,800 Collections of accounts receivable, $1,700,000 Write-offs of accounts receivable deemed uncollectible, $53,000 Collection of accounts previously written off as uncollectible, $12,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000 Prepare the journal entries to record each of the above summary transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…