In 2009, a merchandise was sold on installment basis by MB Company for P80,000 at a gross profit of 25% on cost. During the year, a total of P42,500, including interest of P12,500 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P34,000 after reconditioning cost of P4,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession? a. (P 10,000) b. (P 14,000) c. P 10,000 d. (P 20,000)
In 2009, a merchandise was sold on installment basis by MB Company for P80,000 at a gross profit of 25% on cost. During the year, a total of P42,500, including interest of P12,500 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P34,000 after reconditioning cost of P4,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession? a. (P 10,000) b. (P 14,000) c. P 10,000 d. (P 20,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2009, a merchandise was sold on installment basis by MB Company for P80,000 at a gross profit of 25% on cost. During the year, a total of P42,500, including interest of P12,500 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P34,000 after reconditioning cost of P4,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession?
a. (P 10,000)
b. (P 14,000)
c. P 10,000
d. (P 20,000)
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