Learning Task 2.1: SCI Preparation
Account titles Balance Account titles Balance
Sales return P 5,555 Sales P 800,050
Sales discount 13,300 Purchases 470,650
Depreciation Expense 20,000
Purchase return and
allowances 5,465
Amortization Expense 10,500 Gain on sale of PPE 5,500
Advertising Expense 35,000 Interest Income 4,256
Purchase discount 2% of Purchases Freight Out 4,275
Freight In 9,080 Salaries Expense 80,000
Utilities Expense 55,000 Rent Expense 60,000
Decrease in Inventory 4,570 Bad Debts 3% of gross sales
Additional information:
a) Depreciation of P5,000 is for computer equipment used in the Sales Department.
b) Amortization is attributed to office leasehold improvements.
c) 30% of salaries are attributed to office personnel.
d) Utilities for the store represents 70% of utilities expense.
e) Rent for the office space is P20,000
Requirements: Determine the following:
1) Net sales
2) Net Purchases
3) Cost of Goods Sold
4) Bad Debts Expense
5) Function of Step SCI