ABC Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable. The following data relate to two years of operations. 2020 2021 Installment sales ............................ P500,000 P600,000 Cost of installment sales .................... ? ? Gross profit ................................. 180,000 150,000 Gross profit percentage ...................... ? ? The realized gross profit for 2020 was 132,500 which includes 62,500 for 2020 sale. How much was the total collection for the year 2020?
ABC Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable.
The following data relate to two years of operations.
2020 2021
Installment sales ............................ P500,000 P600,000
Cost of installment sales .................... ? ?
Gross profit ................................. 180,000 150,000
Gross profit percentage ...................... ? ?
The realized gross profit for 2020 was 132,500 which includes 62,500 for 2020
sale.
How much was the total collection for the year 2020?
Step by step
Solved in 2 steps
