FINANCIAL ACCOUNTING: MADE EASY 25 Learning Activity No. 2: Computation of Input and Output Tax Directions: Compute and indicate the following requirements. Show your solution and put your answer on the space provided below the problem. Problem: The following selected account balances were taken from the records of L. Dangase Company, for the month of August 2020. (VAT of 12% is billed separately) Purchases 100,000 Purchase Returns and Allowances 10,000 Purchase Discounts 5,000 Sales 80,000 Sales Retums and Allowances 6,000 Sales Discounts 7,000 Required: 1. Compute the input Tax. 2. Compute the Output Tax. 3. Compute the VAT Payable. 4. Entry to close the input and Output Tax. 5. Entry to remit VAT Payable to Bureau of Internal Revenue