Reference no: EM132817993

An entity has the following accounting information for the year:

Sales 400,000

Purchases 90,000

Opening Inventory 30,000

Sales Returns 80,000

Purchases Returns 70,000

Transportation In 40,000

Transportation Out 10,000

Salaries 9,000

Other Revenues 4,000

General Expenses 7,000

Gross Profit 250,000

Problem 1: What is the amount of net sales of the entity?

a. P260,000             c. P280,000

b. 320,000               d. P330,000

Problem 2: What is the amount of net purchases of the entity?

a. P20,000              c. P50,000

b. 30,000                d. P60,000

Problem 3: What is the amount of closing inventory of the entity?

a. P10,000                  c. P20,000

b. 30,000              d. P40,000

Problem 4: What is the amount of profit for the year?

a. P48,000             c. P198,000

b. 188,000              d. P228,000

Problem 5: Which of the following is/are not relevant to the calculation of net sales?

1. cash sales

2. sales returns

3. sales discounts

a. (2) only           c. (1) and (2) only

b. (3) only                d. (2) and (3) only