A VAT-registered entity is engaged in the business of construction. For each construction project, the entity bills its clients 70% of the contract price throughout each stage of the project and the remaining 30% when the construction is completed. During the 3rd quarter, the data are as follows: July August September Progress Billings sent to P P 4,000,000 3,500,000 3,750,000| client Payments made by clients 4,600,000 4,100,000 3,850,000 How much is the total output VAT for the quarter? O 1,690,000 1,201,000 1,350,000 1,506,000
A VAT-registered entity is engaged in the business of construction. For each construction project, the entity bills its clients 70% of the contract price throughout each stage of the project and the remaining 30% when the construction is completed. During the 3rd quarter, the data are as follows: July August September Progress Billings sent to P P 4,000,000 3,500,000 3,750,000| client Payments made by clients 4,600,000 4,100,000 3,850,000 How much is the total output VAT for the quarter? O 1,690,000 1,201,000 1,350,000 1,506,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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Question
![A VAT-registered entity is engaged in the business of construction. For
each construction project, the entity bills its clients 70% of the contract
price throughout each stage of the project and the remaining 30% when
the construction is completed. During the 3rd quarter, the data are as
follows:
July
August September
Progress
Billings sent to
client
Payments
made by
|clients
P
4,000,000 3,500,000 3,750,000
P
4,600,000 4,100,000 3,850,000
How much is the total output VAT for the quarter?
1,690,000
1,201,000
1,350,000
1,506,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18c850a6-f8ec-493d-8bd6-ceaad19870bc%2F4743cde2-6705-425d-8d27-23629a41139f%2F1rth4uj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A VAT-registered entity is engaged in the business of construction. For
each construction project, the entity bills its clients 70% of the contract
price throughout each stage of the project and the remaining 30% when
the construction is completed. During the 3rd quarter, the data are as
follows:
July
August September
Progress
Billings sent to
client
Payments
made by
|clients
P
4,000,000 3,500,000 3,750,000
P
4,600,000 4,100,000 3,850,000
How much is the total output VAT for the quarter?
1,690,000
1,201,000
1,350,000
1,506,000
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