PC

Incorporated

PC Company is engaged in 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
memorandum entries. The following are extracted from the company’s records:

Accounts receivable 370,000 increase

Notes receivable 200,000 decrease
Accounts payable 150,000 decrease
Notes payable – trade 200,000 increase
Notes payable bank 300,000 increase
Sales returns (P50,000 was refunded) 80,000
Sales discounts 20,000
Purchase returns (P30,000 was refunded) 80,000
Purchase discounts 35,000
Accounts written-off 60,000
Recovery of accounts written off 18,000
Cash sales 300,000
Cash purchases 250,000
Cash received from account customers 1,500,000
Cash payment to trade creditors 1,200,000

Compute for the balances of these accounts on December 31, 2X20

 Total gross sales

 Total gross purchases

Accounts Receivable P 370,000

Collection of Accounts Receivable 1,500,000
Sales Return (800,000 – 50,000) 30,000
Sales Discount
20,000
Account Written – off 60,000
Less: Recovery of Accounts Written – off (18,000) 42,000
Total 1,962,000
Less: Notes Receivable 200,000
Sales on Account 1,762,000
Cash Sales 300,000
Gross Sales 2,062,000
 Accounts Payable P 150,000
Payments of Notes Payable 1,200,000
Purchase Returns (80,000 – 30,000) 50,000
Purchase Discount 35,000
Total
Less: Notes Payable – Trade (200,000)
Notes Payable Bank (300,000) 500,000
Purchase on Account 935,000
Cash Purchase 250,000
Gross Purchases 1,185,000