and credit) during the year amounted P5,000,000. Ninety percent of these were made on credit. • The Company granted discounts to its customers as follows: o 3/10, n/30 o 2/15, n/30 o 1% for all cash customers • Cash received from customers (deposited with Jennifer Bank) amounting to P3,425,000 consisted of: ✓ Cash customers P495,000
Clariza Frozen Goods Inc. opened its business on January 1, 2020. The Company has the following
transactions during the year:
• Sales (cash and credit) during the year amounted P5,000,000. Ninety percent of these were made
on credit.
• The Company granted discounts to its customers as follows:
o 3/10, n/30
o 2/15, n/30
o 1% for all cash customers
• Cash received from customers (deposited with Jennifer Bank) amounting to P3,425,000 consisted
of:
✓ Cash customers P495,000
✓ Customers paying within 10 days 1,940,000
✓ Customers paying within 15 days 490,000
✓ Customers not availing the discounts 500,000
• Merchandise returns amounted to P500,000, all related to credit sales.
• The Company provided for 2% of its net credit sales as doubtful accounts.
Unadjusted balances of some of the Company’s accounts as at December 31, 2020 before closing its books
are as follows:
Cash in bank per ledger - Charles Bank P1,500,000
Cash in bank per bank statement - Charles Bank 1,775,000
Current account - Jennifer Bank 1,000,000
Savings account 236 - Allana Bank 500,000
Savings account 237 - Allana Bank (100,000)
Petty cash fund 50,000
Bond sinking fund, bonds will mature on December 31, 2021 1,000,000
30-day treasury bill 2,000,000
120-day time deposit 1,000,000
Claims receivable on shipping damages 20,000
Advances to affiliates, collectible on February 3, 2021 30,000
Charles Bank December bank statement revealed the following:
✓ Proceeds from loan collected by bank amounting to P310,000, including P10,000 interest.
✓ NSF checks received from employees and bank service charges amounting to P25,000 to P10,000,
respectively.
In addition, the petty cash fund consisted of the following:
Currency and coins P15,000
Various receipts charged to Clariza Frozen Foods Inc. 15,000
Customer check payable to Clariza Frozen Foods Inc. (excluded from collections above) 5,000
IOUs from employees 5,000
Check payable to petty cash custodian 10,000
Total P50,000
Requirements:
As at December 31, 2020, compute for the following:
3. Total current assets
4. Expenses to be recognized in the statement of comprehensive income in relation to the items mentioned
above (excluding sales discounts and returns).
Step by step
Solved in 2 steps with 2 images
