#32 ANSWER AND EXPLAIN Edith Motors sells automobiles on installment. Information presented below relates to Edith'soperations for the last three years:202120202019Installment Sales1,075,000Gross margin on cost66 2/3%33 1/3%25%Outstanding Installment Receivable as ofDecember 31:From 2021 Sales698,750From 2020 Sales234,000585,000From 2019 Sales330,400865,400During 2020, Edith repossessed an automobile that it has sold for P160,000 on installmentbasis in 2019. The installment receivable balance related to this repossessed merchandise isP64,000. The company expects to resell the repossessed item for P56,000 before anyreconditioning cost. Reconditioning cost amount to P7,500. The company's normal profitmargin on sale of used automobile is 15%.Compute for realized gross profit in 2021P304,330O P291,530O P219,530Р340,330

Calculation of realize gross profit in 2021 are as follows

Edith Motors sells automobiles on installment. Information presented below relates to Edith's operations for the last three years: 2021 2020 2019 Installment Sales 1,075,000 Gross margin on cost 66 2/3% 33 1/3% 25% Outstanding Installment Receivable as of December 31: From 2021 Sales 698,750 From 2020 Sales 234,000 585,000

Edith Motors sells automobiles on installment. Information presented below relates to Edith's operations for the last three years: 2021 2020 2019 Installment Sales 1,075,000 Gross margin on cost 66 2/3% 33 1/3% 25% Outstanding Installment Receivable as of December 31: From 2021 Sales 698,750 From 2020 Sales 234,000 585,000

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 24P: Comprehensive Notes Receivable On January 1, 2019, Seaver Company sold land with a book value of...

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