Reference no: EM132676458
PICA Company is engaged in small export business. The company maintains limited records. Most of the company's transactions are summarized in a cash journal; non-cash transactions are recorded by making memorandum entries. The following are extracted from the company's records:
1. Accounts receivable 370,000 increase
2. Notes receivable 200,000 decrease
3. Accounts payable 150,000 decrease
4. Notes payable - trade 200,000 increase
5. Notes payable bank 300,000 increase
6. Sales returns (P50,000 was refunded) 80,000
7. Sales discounts 20,000
8. Purchase returns (P30,000 was refunded) 80,000
9. Purchase discounts 35,000
10. Accounts written-off 60,000
11. Recovery of accounts written off 18,000
12. Cash sales 300,000
13. Cash purchases 250,000
14. Cash received from account customers 1,500,000
15. Cash payment to trade creditors 1,200,000
Required:
Problem 1: Compute for the balances of these accounts on December 31, 2X2O
- Total gross sales
- Total gross purchases