Answered step by step
Verified Expert Solution
Question
1 Approved Answer
audit of current liabilities Case 1 Yusuke Corporation records its purchases at gross amounts but wishes to change to recording of purchases net of purchase
audit of current liabilities
Case 1 Yusuke Corporation records its purchases at gross amounts but wishes to change to recording of purchases net of purchase discounts. Discounts on purchases recorded from January 1, 20x1 to December 31, 20x1 totaled P80,000. Of this amount, P8,000 is still available in the accounts payable balance, the balances in Yusuke's accounts as of and for the year ended December 31, 20x1, before conversion are: Purchases Purchase discounts Accounts payable P4,000,000 32,000 1,200,000 Required: 1. The amount of purchase discounts lost to be recognized is 2. Accounts payable balance should be reduced by 3. The purchases account should be reduced by 4. Prepare the entry to record the conversionStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started