AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances, advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in AAA Co.'s December 31 balance sheet: 2019 2020 Royalties receivable Unearned royalties 90,000 60,000 85,000 40,000 During 2020 AAA Co. received royalties' remittances of P200,000. How much should AAA Co. report as royalty income in its income statement for the year ended December 31, 2020?

AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances, advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in AAA Co.'s December 31 balance sheet: 2019 2020 Royalties receivable Unearned royalties 90,000 60,000 85,000 40,000 During 2020 AAA Co. received royalties' remittances of P200,000. How much should AAA Co. report as royalty income in its income statement for the year ended December 31, 2020?

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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