GCASH accounts for sales under the installment method. On January 1, 2020 its ledger accounts included the following balances: Installment Receivable, 2018 P 38,500 Installment Receivable, 2019 155,000 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account balances before adjustment were as follows: Installment Receivable, 2018 P 0 Installment Receivable, 2019 42,000 Installment Receivable, 2020 100,500 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Deferred Gross Profit, 2020 75,810 The total realized gross profit on December 31, 2020 is: a. P90,350 c. P98,910 b. P97,510 d. P97,350
GCASH accounts for sales under the installment method. On January 1, 2020 its ledger accounts included the following balances: Installment Receivable, 2018 P 38,500 Installment Receivable, 2019 155,000 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account balances before adjustment were as follows: Installment Receivable, 2018 P 0 Installment Receivable, 2019 42,000 Installment Receivable, 2020 100,500 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Deferred Gross Profit, 2020 75,810 The total realized gross profit on December 31, 2020 is: a. P90,350 c. P98,910 b. P97,510 d. P97,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
GCASH accounts for sales under the installment method. On January 1, 2020 its ledger
accounts included the following balances:
Installment Receivable, 2018 P 38,500
Installment Receivable, 2019 155,000
Deferred Gross Profit, 2018 11,550
Deferred Gross Profit, 2019 62,000
Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account
balances before adjustment were as follows:
Installment Receivable, 2018 P 0
Installment Receivable, 2019 42,000
Installment Receivable, 2020 100,500
Deferred Gross Profit, 2018 11,550
Deferred Gross Profit, 2019 62,000
Deferred Gross Profit, 2020 75,810
The total realized gross profit on December 31, 2020 is:
a. P90,350 c. P98,910
b. P97,510 d. P97,350
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