BM2002

NAME: DATE: SCORE:

PC Incorporated

PC Company is engaged in 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 memorandum entries. The
following are extracted from the company’s records:

Accounts receivable 370,000 increase

Notes receivable 200,000 decrease
Accounts payable 150,000 decrease
Notes payable – trade 200,000 increase
Notes payable bank 300,000 increase
Sales returns (P50,000 was refunded) 80,000
Sales discounts 20,000
Purchase returns (P30,000 was refunded) 80,000
Purchase discounts 35,000
Accounts written-off 60,000
Recovery of accounts written off 18,000
Cash sales 300,000
Cash purchases 250,000
Cash received from account customers 1,500,000
Cash payment to trade creditors 1,200,000

Required:
Compute for the balances of these accounts on December 31, 2X20 (2 items x 10 points).

 Total gross sales P2,062,000

 Total gross purchases P1,185,000

Accounts receivable P370,000

Collection of Accounts receivable 1,500,000
Sales return (80,000-50,000) 30,000
Sales discounts 20,000
Accounts written-off 60,000
Recovery of accounts written off (18,000) 42,000
Total P1,962,000
Less: Note payable-trade 200,000
Sales on account 1,762,000
Cash sales 300,000
Total Gross Sales P2,062,000

Accounts receivable P150,000

Payments of notes payable 1,200,000
Purchase return (80,00030,000) 50,000
Purchase discount 35,000
Total P1,435,000
Less Notes payable trade 200,000
Notes payable bank 300,000 (500,000)
Cash purchase 250,000
Total Gross Purchase P1,185,000
Rubric for grading:
PERFORMANCE INDICATORS POINTS
Correct accounts and amounts used 6
Computed final amounts are correct/balanced 4
TOTAL 10

01 eLMS Activity 2 *Property of STI

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