Cutting Edge Co. is engaged in a 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 memo entries. The following are abstracted from the company's records:

Accounts receivable, increase P1,480,000

Notes receivable, decrease 800,000

Accounts payable, decrease 600,000

Notes payable-trade, increase 800,000

Notes payable -bank, increase 1,200,000

Sales return (P200,000 was refunded) 320,000

Sales discounts 80,000

Purchase returns (P120,000 was refunded) 320,000

Purchase discounts 140,000

Accounts written -off 240,000

Recovery of accounts written-off 72,000

Cash sales 1,200,000

Cash purchases 1,000,000

Cash received from account customers 6,000,000

Cash payment to trade creditors 4,800,000

Requirements:

1.) What are the correct gross sales on account?

2.) What are the total gross sales?

3.) What are the total net sales?

4.) What are correct purchases on account?

5.) What are the gross purchases?

6.) What are the net purchases?