In 2009, a merchandise was sold on installment basis by MB Company for P160,000 at a gross profit of 25% on cost. During the year, a total of P85,000, including interest of P25,000 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P70,000 after reconditioning cost of P8,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In 2009, a merchandise was sold on installment basis by MB Company for P160,000 at a gross profit of 25% on cost. During the year, a total of P85,000, including interest of P25,000 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P70,000 after reconditioning cost of P8,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession? 

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