PART 3. SHORT PROBLEMS. Provide answers to the short problems below. Round off all final answers to whole number. You are to provide numeric answers with the following format (examples only): 1,000 or -1,000.

11. The following data are taken from the books of Metro Glow Traders for the year 2019:

Net Sales	P3,600,000
Freight in	90,000
Purchase discounts	50,000
Ending inventory	240,000

If the gross margin is 40% of net sales, what is the cost of the goods available for sale?

12. Sia Co Lim Company sold its merchandise at a gross profit of P2,400,000. On June 30, 2020, all of Lim's inventory was destroyed by fire. The following figures pertain to Lim's operations for the six months ended June 30, 2020:

Net Sales	P8,000,000
Beginning Inventory	2,000,000
Net Purchases	5,200,000

What is the estimated cost of destroyed inventory?

13. The Joker Enterprises made P487,000 in cash sales and P220,000 of credit sales for the month of November. Credit customers are given 30 days to settle their account with a 2% discount if they are able to pay within 5 days. A number of credit customers returned P15,000 worth of merchandise. Assuming that credit customers avail of the cash discount, what is the amount of net sales that Joker should report in the income statement for the period?

14. The following costs were incurred by Urban Products Co., a manufacturer during 2019:

Accounting and Legal Fees	P 25,000
Freight-In	175,000
Freight-Out	160,000
Officers Salaries	150,000
Insurance	85,000
Sales Representative Salaries	215,000

What amount of these costs should be reported as general and administrative expenses for 2019?

15. Fevie Laquigan, proprietress of Fevie Bookstore, bought an office equipment costing P60,000. It was, however, charged to repairs and maintenance. Data about the office equipment follows:

Date of purchase: June 30, 2019

Estimated life: 5 years

Salvage value: None

The error was discovered and corrected on Dec. 31, 2019 prior to the closing of the books of accounts. How much is the understatement or overstatement of net income for the year ended Dec. 31, 2019 because of the error?

(Note: If understatement, place a negative sign. Example: -1,000)

16. The following balances were reported by Robin & Sons at December 31, 2019 and 2018:

	Dec. 31, 2019	Dec. 31, 2018
Inventory	P260,000	P290,000
Accounts Payable	75,000	50,000

Robin & Sons paid suppliers P490,000 during the year ended Dec. 31, 2019. What amount should Robin & Sons report for cost of goods sold in 2019?

17. Jones Company reported sales revenue of P4,600,000 in its income statement for the year ended Dec.31, 2020. Additional information is as follows:

	12/31/2019	12/31/2020
Accounts Receivable	P1,000,000	P1,300,000
Allowance for Bad Debts	60,000	110,000
Uncollectible Accounts Written Off	20,000

Under the cash basis of accounting, Jones Company would have reported 2020 sales of?

(For question numbers 18 and 19)

Catwoman Company sells quality bags. Batman wants to purchase bags in volume orders. Catwoman offers trade discounts for purchases in bulk. The following table indicates the available trade discount for a particular number of purchases:

Number of bags purchased	Trade discount
5,000 - 7,000	10%
7,001 - 9,000	15%
9,001 and above	20%

Batman plans to purchase a total of 8,000 bags on account. The list price given for each bag is P750. Payment terms granted to Batman was 3/15, n/60.

18. How much was the total invoice price?

19. If Batman pays within the discount period, how much discount will he be able to avail?

20. On June 1, 2020, Rural Traders sold merchandise with a list price of P5,000 to Rural Merchandising on Account. Rural Traders allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/60 and the sale was made F.O.B. shipping point. Rural Traders prepaid P200 of delivery cost for Urban Merchandising as an accommodation. On June 15, 2020, Rural Traders received from Urban Merchandising a remittance in full payment amounting to?