Question
Vic Vivar started business on January 1, 2019. His ledger on December 31, 2019, among others showed: Accounts receivable P125,650 Sales 367,280 Sales returns and
Vic Vivar started business on January 1, 2019. His ledger on December 31, 2019, among
others showed:
Accounts receivable P125,650
Sales 367,280
Sales returns and allowances 3,180
Bad debts provided for 2019 was 3% of net sales. During 2020, sales amounted
P460,700 out of which P3,700 were returned by the customers. Cash received from
customers amounted to P235,112.50, of which P132,112.50, after 21/2 percent discount,
pertains to 2020 sales.
Of the 2019 accounts, P1,500 are worthless.
Bad debts provision for 2020 is 2% of net sales.
Required: all entries should have an explanation (To record sales computed as follows: Etc.)
a) Entries to record sales in 2019, including its subsequent collection.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started