ASAP COMPLETE SOLUTION AND CORRECT ANSWERS

Problem 31, 20X2: The following are taken from the records of ABC Company for the year ended December Debit Credit Sales P764,985 Purchase discount B,200 Purchase returns and allowances 5,465 Purchases 459,990 Freight-in 9,180 Sales discount 13,300 Sales returns and allowances 5,455 Depreciation expense 25,000 Amortization expense 10,000 Salaries expense 80,000 Utilities expense $5,000 Advertising expense 15,000 Rent expense 60,000 Interest income 5,441 Interest expense 5,677 Gain on sale of PPE 5,465 Bad debts expense Based on actual physical count, inventory balance are as follows: January 1, 20X2 P25,455 December 31, 20%2 P20,765 Bad debts expense is 4% of net sales. Classify the bad debt expense as a general and administrative expense. . 1. Determine the following: a. Net sales b. Net purchases Chapter 2: Statement of Comprehensive Income 55 Cost of goods sold d. Bad debts expense 2. Prepare a nature of expense SCI. Prepare a function of expense SCI. Additional information: a. Depreciation of P5,000 is for computer equipment used in the administrative office. b. Amortization is attributed to office leasehold improvements. 40% of salaries are attributed to sales personnel. d. Utilities for the store represent 3596 of utilities expense. e. Rent for the office space is P20,000