Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note. *How much is the Installment Sales to be recognized in 2021? *How much is the revenue to be recognized in 2021? *How much is the trade in to be reported at Jan. 1,2021? *How much is the net income? To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note. *How much is the Installment Sales to be recognized in 2021? *How much is the revenue to be recognized in 2021? *How much is the trade in to be reported at Jan. 1,2021? *How much is the net income? To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on January 1, 2021. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P50,000. The said old car has fair value of P150,000. The customer issued a 5-year note for the balance to be payable in equal annual installments every December 31 starting 2021. The note payable is interest bearing with 10% rate due on the remaining balance of the note.
*How much is the Installment Sales to be recognized in 2021?
*How much is the revenue to be recognized in 2021?
*How much is the trade in to be reported at Jan. 1,2021?
*How much is the net income?
To whoever will answer it, I wish you could answer the 4 questions they are connected so it would be a hassle if only the three questions will be answered, do me a favor pls. Thank you in advance :))
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