Reference no: EM132843683
Cutting Edge Co. is engaged in a 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 memo entries
The following are abstracted from the company's records:
Accounts receivable, increase P1,480,000
Notes receivable, decrease 800,000
Accounts payable, decrease 600,000
Notes payable-trade, increase 800,000
Notes payable -bank, increase 1,200,000
Sales return (P200,000 was refunded) 320,000
Sales discounts 80,000
Purchase returns (P120,000 was refunded) 320,000
Purchase discounts 140,000
Accounts written -off 240,000
Recovery of accounts written-off 72,000
Cash sales 1,200,000
Cash purchases 1,000,000
Cash received from account customers 6,000,000
Cash payment to trade creditors 4,800,000
Requirements:
Problem 1.) What are the correct gross sales on account?
Problem 2.) What are the total gross sales?
Problem 3.) What are the total net sales?
Problem 4.) What are correct purchases on account?
Problem 5.) What are the gross purchases?
Problem 6.) What are the net purchases?