HC uses installment sales method in revenue recognition. The following information is provided in the records of Hale:     20X1 20X2 20X3 Sales P1,500,000 P1,250,000 P2,350,000 Cost of Sales 900,000 780,000 1,057,500 Cash Collections       From 20x1 Sales 50,000 70,000 670,000 From 20x2 Sales   230,000 365,000 From 20x3 Sales     124,000   REQUIRED: Compute for the following:   1. Adjusted deferred gross profit balance in 20x1                          2. Realized gross profit in 20x1                          3. Adjusted deferred gross profit balance in 20x2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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HC uses installment sales method in revenue recognition. The following information is provided in the records of Hale:

 

 

20X1

20X2

20X3

Sales

P1,500,000

P1,250,000

P2,350,000

Cost of Sales

900,000

780,000

1,057,500

Cash Collections

 

 

 

From 20x1 Sales

50,000

70,000

670,000

From 20x2 Sales

 

230,000

365,000

From 20x3 Sales

 

 

124,000

 

REQUIRED: Compute for the following:

 

1. Adjusted deferred gross profit balance in 20x1

                        

2. Realized gross profit in 20x1

                        

3. Adjusted deferred gross profit balance in 20x2

                        

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