ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade...

Transcribed Image Text:

ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021? ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were 25% and 5%. Terms were 4/30, n/60. Customer made a down payment equal to 25% of the list price. The remaining balance was paid on January 31, 2021. ALS & Co. uses the net method. 1. How much were total trade discounts? 2. How much is recorded by ALS & Co. to Sales on January 1, 2021? 3. How much accounts receivable was recorded on January 1. 2021? 4. How much was recorded to Purchase Discounts Lost on January 31, 2021?

Answer rating: 100% (QA)

1 Total Trade Discounts The trade discounts were 25 and 5 Trade discount 1 25 of P5700000 P1425000 T... View the full answer