Reference no: EM132695104
Problem - 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:
i. Total gross sales
ii. Total gross purchases