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Problem 5

Bamboo Marketing's capital account increased from P450,000 to P540,000 with no additional investment or drawings. Based on the trial balance, sales were calculated to be P145,360. Cost of goods sold was P50,950, resulting in gross profit of P93,500 and net income of P90,000.

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48 views3 pages

Problem 5

Bamboo Marketing's capital account increased from P450,000 to P540,000 with no additional investment or drawings. Based on the trial balance, sales were calculated to be P145,360. Cost of goods sold was P50,950, resulting in gross profit of P93,500 and net income of P90,000.

Uploaded by

Ran Cañete
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 5

Bamboo Marketing noted that its capital account had increased from P 450,000 to P 540,000.
There was no additional investment and drawings made. Below are the details taken from the
trial balance as of 2023:

Debit Credit

Purchases P 52,000

Purchase Discounts P 960

Merchandise Inventory, Jan. 1 5,700

Merchandise Inventory, Dec. 31 5,570

Sales Returns 910

Sales ?

Purchase Returns 1,260

Freight In 1,040

Expenses 3,500

Required: Compute the Sales


Solution:

Sales P 145,360

Less: Sales Returns P 910 910

Net Sales P 144,450

Merchandise Inventory, Jan. 1 P 5,700

Purchases P 52,000

Less: Purchase Discounts P 960

Purchase Returns 1,260 2,220

Net Purchases P 49,780

Add: Freight In 1,040 50,820

Net Cost of Merchandise 56,520

Less: Merchandise Inventory, Dec. 31 5,570

Cost of Goods Available Sold 50,950

Gross Profit P 93,500

Less: Expenses 3,500

Net Income P 90,000


Problem 6

On December 31, 2023 XYZ Company showed the following account balances for the years
2022 and 2023:

2022 2023

Accounts Receivable P 120,000 P 230,000

Sales Discount 3,000 1,200

Sales Returns 1,000 1,500

Collections from Accounts Receivable 128,000 290,000

Cost of Sales 115,000 187,000

Gross Profit - ?

Accounts Receivable

120,000 290,000 Cash Receipts


1,500 Sales Returns
1,200
Sales Discounts
402,700 230,000
Ending A/R

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