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Question - Damalerio Corporation uses the cash basis of accounting. Damalerio collected P1,400,000 from its customers during the year. Damalaerio had P100,000 in Accounts receivable at the beginning of the year, and P180,000 in Accounts receivable at the end of the year. The company also had P40,000 and P50,000 of allowance for bad debts at the beginning and at the end of the year, respectively.
1. What is Damalerio's Sales Revenue under the accrual basis of accounting?
2. What is Damalerio's Sales Revenue under the accrual basis of accounting assuming that the company wrote off P30,000 of tis accounts during the year and recovered P10,000 from previously written off accounts?
3. What is Damalerio's Sales Revenue under accrual basis of accounting assuming that company had sales discount amounting to P50,000 and sales returns (all before collections) amounting to P70,000.
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