Reference no: EM132584305

Question 1: The following information relates to ABC Company's accounts receivable for 2018:

Accounts receivable, January 1, 2017 P975,000

Credit sales for 2017 P4,050,000

Sales returns for 2017 P112,500

Write-off P60,000

Collections from customers during 2017 P3,225,000

Estimated future sales returns at December 31, 2017 P75,000

Estimated sales discounts accounts at December 31, 2017 P25,000

What amount should ABC report for accounts receivable at December 31, 2017 statement of financial position?

Option 1: P1,627,500

Option 2: Answer not given

Option 3: P1,527,500

Option 4: P1,800,000

Option 5: P1,627,500

Question 2: The following information was available from the inventory records of Mon Company for January:

                                        Units                 Unit cost               Total Cost

Balance at January 1          3,000                  P 9.77                P 29,310

Purchases:

January 6                             2,000              P 10.30           P 20,600

January 26                             2,700                 P 10.71        P 28,917

Sales:

January 7 (2,500)

January 31 (3,200)

Balance at January 31 2,000

Assuming that Mon maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest peso?

Option 1: P 21,010

Option 2: P 20,474

Option 3: P 20,520

Option 4: P 20,720

Option 5: Answer not given