Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00...

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Problem Q.2.2.4.1<br>AA Trading reported the following accounts during the year 2020:<br>P 700,000.00<br>P 300,000.00<br>Cash sales<br>Sales on account<br>Collections:<br>P 100,000.00<br>P 50,000.00<br>P 400,000.00<br>P 200,000.00<br>P 100,000.00<br>P 150,000.00<br>P 20,000.00<br>Accounts receivable<br>Advances from customers<br>Cash purchases<br>Purchases on account<br>Merchandise inventory, Dec. 31, 2020<br>Sales expenses (80% paid)<br>Cash advances to employees<br>Bad debts expense<br>5,000.00<br>Depreciation expense<br>P 10,000.00<br>Q1 If AA uses cash basis accounting, what would be its net income?<br>

Extracted text: Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00 P 100,000.00 P 150,000.00 P 20,000.00 Accounts receivable Advances from customers Cash purchases Purchases on account Merchandise inventory, Dec. 31, 2020 Sales expenses (80% paid) Cash advances to employees Bad debts expense 5,000.00 Depreciation expense P 10,000.00 Q1 If AA uses cash basis accounting, what would be its net income?

Jun 10, 2022

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Problem Q.2.2.4.1 AA Trading reported the following accounts during the year 2020: P 700,000.00 P 300,000.00 Cash sales Sales on account Collections: P 100,000.00 P 50,000.00 P 400,000.00 P 200,000.00...

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