ACC 179 P3 QUIZ 1

Solve the following problems, and show your solution using T-accounts.
1. JYD Company provided the following information for the year 2023:
Credit sales
Gross P6,000,000
Discounts 300,000
Customers owed P2,000,000 on January 1 and P1,500,000 on December 31. What amount of collections
should be reported for the year 2023?

2. Using the information in No. 1, determine the amount of collections that should be reported for the year
2023 if the company also has cash sales.
Cash Sales
Gross P4,000,000
Returns and 200,000
allowances

3. ABC Company reported sales revenue of P9,200,000 in the income statement for the year 2023.
January 1 December 31
Accounts Receivable P2,000,000 P2,600,000
Allowance for uncollectible accounts 120,000 220,000
Advances from customers 400,000 600,000
What amount of collections should be reported for the year 2023?

4. The entity reported collections of P3,500,000 and P1,600,000 in the for the years ended December 31,
2020 and 2019 respectively. The entity reported accounts receivable of P600,000 and P1,000,000 on
December 31, 2020 and 2019 respectively.
What amount should be reported as sales in the income statement for the year 2020?

5. ABC Company reported the following balances:

December 31 January 1
Inventory P5,200,000 P5,800,000
Accounts payable 1,500,000 1,000,000
The entity paid suppliers P9,800,000 during the current year.
What is the amount of purchases during the year?

6. Using the information in No.5, determine the amount of Cost of Goods Sold.

Use the following information for numbers 7-10.

JYD Corporation provided the following data:
January 1 December 31
Accounts receivable P2,400,000 P2,700,000
Accounts payable 3,000,000 3,700,000
Sales returns totaled P500,000 of which 100,000 was paid to customers.
Cash receipts from customers after P1,000,000 sales discounts amounted to P16,000,000.
Cash payments to trade creditors totaled P10,000,000 after purchase discounts of P400,000. Purchase
returns amounted to P800,000, of which P200,000 was received from the supplier.

Determine the following:

7. Gross Sales
8. Net Sales
9. Gross Purchases
10. Net Purchases

11. Juan reported capital of P3,400,000 on January 1 and P4,800,000 on December 31, 2020. During the year
2020, Juan withdrew merchandise with a carrying amount of P200,000 and a sale value of P360,000. Juan
also paid a P2,000,000 note payable of the business with an interest of 12% for six months with his own
money. Determine the Net Income or loss for the year 2020.

12. ABC Co. provided you with the following information about its property, plant, and equipment account:
Beginning Ending
Equipment P100,000 P120,000
Accumulated Depreciation 15,000 18,000
Additional Information: a) Depreciation is 15% per annum. b) At the start of the year, ABC Co. acquired
equipment and at the same time disposed equipment with a carrying amount of P25,000 with accumulated
depreciation of P15,000 for P35,000. How much is the cost of the machine disposed?

13. Using information in no.12, how much is the cost of the machine acquired?