ChoicesA46,588B60,814C21,000D54,707 Joker Corp. had been using the cash methodto account for income since its first year ofoperation in 2008. All sales are made on acredit with note receivable given by thecustomer. The following information weremade available for the first two years ofoperations:Cost of goods purchased includes increasein inventory of goods on hand of P20,000 in2008 and P32,000 in 2009. How much isthe realized gross profit for the year ended2008 (rounded to the nearest peso)? 20082009Notes receivable 2008216,000144,000Notes receivable 2009240,000Discount on notes receivable 200828,66822,316Discount on notes receivable 200932,172Income - collection on principal128,000200,000Income - interest14,40022,000Cost of goods purchased200,560208,080

Since Joker Corporation adopted cash method to recognise the profit hence cost of goods purchased…

Answered: 54,70 | bartleby

Business

Accounting

54,70

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Choices A 46,588 B 60,814 C 21,000 D 54,707

Joker Corp. had been using the cash method
to account for income since its first year of
operation in 2008. All sales are made on a
credit with note receivable given by the
customer. The following information were
made available for the first two years of
operations:
Cost of goods purchased includes increase
in inventory of goods on hand of P20,000 in
2008 and P32,000 in 2009. How much is
the realized gross profit for the year ended
2008 (rounded to the nearest peso)?

2008
2009
Notes receivable 2008
216,000
144,000
Notes receivable 2009
240,000
Discount on notes receivable 2008
28,668
22,316
Discount on notes receivable 2009
32,172
Income - collection on principal
128,000
200,000
Income - interest
14,400
22,000
Cost of goods purchased
200,560
208,080

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