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Question - CAC Co. provided these information for 2020: Inventory - January 1: P400,000; Freight in: P300,000; Purchase Returns : P900,000; Inventory - December 31 : P500,000; Selling expenses: P1,250,000; Sales Discount: P250,000. The cost of sales is six times the selling expenses. How much is the gross purchases for 2020?
a. P6,500,000
b. P6,700,000
c. P8,000,000
d. P8,200,000
Make the journal entries in the books of Flavours Limited for the years ending 2018, 2019 and 2020 relating to the patent transactions
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