Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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 conversion

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions