INGATSAGOT Company began operations on January 1, 2017. The following data pertain to INGATSAGOT operations for the year 2017:Installment sales (before over/under-allowance)31,500,000Operating expenses4,025,000Regular sales13,125,000Total collections for the year (excluding interest of P840,000)20,880.000Cost of regular sales7,525,000Cost of installment sales22,050,000Accounts receivable, end5,125,000Installment receivable written-off1.540,000Estimated resale value of repossessed merchandise2,900,000Repossessed accounts3,500,000Actual value of trade-in merchandise2,800,000Trade-in allowance4,900,000575,000Reconditioning cost of the repossessed merchandise15%Profit usual on the sale of repossessed merchandiseAdditional information: The company gives allowance to used merchandise for installment sale purposes only.How much is the deferred gross profit account (after adjustment) balance as of December 31, 2017

Account receivablesThe amount of money that a company has to receive from the customers is called…

INGATSAGOT Company began operations on January 1, 2017. The following data pertain to INGATSAGOT operations for the year 2017: Installment sales (before over/under-allowance) Operating expenses Regular sales Total collections for the year (excluding interest of P840,000) 31,500,000 4,025,000 13,125,000 20,880,000 7,525,000 22,050,000 Cost of regular sales Cost of installment sales Accounts receivable, end Installment receivable written-off Estimated resale value of repossessed merchandise Repossessed accounts Actual value of trade-in merchandise Trade-in allowance Reconditioning cost of the repossessed merchandise Profit usual on the sale of repossessed merchandise Additional information: The company gives allowance to used merchandise for installment sale purposes only. How much is the deferred gross profit account (after adjustment) balance as of December 31, 2017 5,125,000 1,540,000 2,900,000 3,500,000 2,800,000 4,900,000 575,000 15%

INGATSAGOT Company began operations on January 1, 2017. The following data pertain to INGATSAGOT operations for the year 2017: Installment sales (before over/under-allowance) Operating expenses Regular sales Total collections for the year (excluding interest of P840,000) 31,500,000 4,025,000 13,125,000 20,880,000 7,525,000 22,050,000 Cost of regular sales Cost of installment sales Accounts receivable, end Installment receivable written-off Estimated resale value of repossessed merchandise Repossessed accounts Actual value of trade-in merchandise Trade-in allowance Reconditioning cost of the repossessed merchandise Profit usual on the sale of repossessed merchandise Additional information: The company gives allowance to used merchandise for installment sale purposes only. How much is the deferred gross profit account (after adjustment) balance as of December 31, 2017 5,125,000 1,540,000 2,900,000 3,500,000 2,800,000 4,900,000 575,000 15%

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

INGATSAGOT Company began operations on January 1, 2017. The following data pertain to INGATSAGOT operations for the year 2017:
Installment sales (before over/under-allowance)
31,500,000
Operating expenses
4,025,000
Regular sales
13,125,000
Total collections for the year (excluding interest of P840,000)
20,880.000
Cost of regular sales
7,525,000
Cost of installment sales
22,050,000
Accounts receivable, end
5,125,000
Installment receivable written-off
1.540,000
Estimated resale value of repossessed merchandise
2,900,000
Repossessed accounts
3,500,000
Actual value of trade-in merchandise
2,800,000
Trade-in allowance
4,900,000
575,000
Reconditioning cost of the repossessed merchandise
15%
Profit usual on the sale of repossessed merchandise
Additional information: The company gives allowance to used merchandise for installment sale purposes only.
How much is the deferred gross profit account (after adjustment) balance as of December 31, 2017

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