Question 3

The total sales was P5,000, 000 of which sales on cash basis equals to 60%. The policy of the business is to provide 2% of credit sales as bad debts expense. How much is the net realizable value of the receivable?

A.1,960,000

B.1,900,000

c. 2,000,000

Question 4

Bike LTD purchased 10 bikes during January 2020 and sold 6 bikes, details of which are as follows:

January 1 Purchased 5 bikes @ P5000 each

January 5 Sold 2 bikes

January 10 Sold 1 bike

January 15 Purchased 5 bikes @ 5,500 each

January 25 Sold 3 bikes

Using FIRST IN FIRST OUT method, what is the cost of ending inventory on January 30, 2020?

1. 22,000
2. 20,000
3. 30,500

Question 5

The total sales was P5,000, 000 of which sales on cash basis equals to 60%. The policy of the business is to provide 2% of credit sales as bad debts expense. How much is the bad debts expense?

1. 60,000
2. 30,000
3. 40,000

Question 6

Bike LTD purchased 10 bikes during January 2020 and sold 6 bikes, details of which are as follows:

January 1 Purchased 5 bikes @ P5000 each

January 5 Sold 2 bikes

January 10 Sold 1 bike

January 15 Purchased 5 bikes @ 5,500 each

January 25 Sold 3 bikes

Using LAST IN FIRST OUT method, what is the cost of ending inventory on January 30, 2020?

1. 22,000
2. 20,000
3. 21,000

Question 7

COVID Corporation financial record contains the following items :

_{Post-dated checks from customers (30 days)} 120,000 Cash under Cashiers custody awaiting deposits 55,500

Petty cash fund 5,000 Post-dated check to suppliers 79,500

Change fund 7,500 Dividend fund 15,000

Savings account- BDO 195,000 NSF Checks issued by customers 5,000

Current account- BPI 135,000 Savings account-BPI (10,000 Comp. Bal.-Restricted for 2 years) 110,000

The total CASH ON HAND is

1. 63,000
2. 55,500
3. 83,000

Question 8

COVID Corporation financial record contains the following items :

_{Post-dated checks from customers (30 days)} 120,000 Cash under Cashiers custody awaiting deposits 55,500

Petty cash fund 5,000 Post-dated check to suppliers 79,500

Change fund 7,500 Dividend fund 15,000

Savings account- BDO 195,000 NSF Checks issued by customers 5,000

Current account- BPI 135,000 Savings account-BPI (10,000 Comp. Bal.-Restricted for 2 years) 110,000

The total CASH IN BANK is

1. 430,000
2. 330,000
3. 340,000

Question 9

On Nov. 1, 2018, Zee Lou Portraits paid P36,000 to renew its insurance policy for 3 years. What amounts should be reported as prepaid insurance in Zee Lous Dec. 31, 2019 financial statements?

A.P23, 000

B. P24, 000

C. P35, 000

Question 10.

XYZ Companys accounting records on Jan.31,2020 shows the following:

Accounts receivable P250, 000

Allow. for Bad Debts 24, 000

On the same date the company wrote off an accounts receivable of P6, 000. How much is the net realizable value of XYZs accounts receivable?

1. 226,000
2. 244,000
3. 232,000