Reference no: EM132838845

Questions -

Q1. On May 7, 2021, Eli Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain on the sale. Eli agreed to accept one payment of P35,000 on August 15 and the second payment of P35,000 on December 15. Eli had a calendar year-end. What amount of gain was reported during the second, third, and fourth quarters of the year from this sale?

Q2. Mayo Company incurred an inventory loss from market decline of P600,000 on June 30, 2020. What amount of the inventory loss should be recognized in the quarterly income statement for the three months ended June 30, 2020?

Q3. Edrich Company is engaged in small export business. The Company maintains limited records. Most of the company's transaction are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from the company's records;

Accounts receivable 300,000 increase

Accounts payable 200,000 decrease

Notes payable-trade 150,000 increase

Sales returns (P40,000 was refunded) 900,000

Sales discounts 15,000

Purchase returns (P30,000 was refunded) 80,000

Purchase discounts 15,000

Accounts written-off 60,0000

Cash sales 300,000

Cash purchases 250,000

Cash receive from account customers 1,500,000

Cash payment to trade creditors 1,300,000

What is the amount of gross sales?