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Lovebirds Corporation sells goods on the installment basis. For the year ended December 31, 2011, the following were reported: Cost of installment sales P525,000 Loss on repossessions 13,500 Fair value of repossessed merchandise 112,500 Account defaulted 180,000 Deferred gross profit, December 31

Lovebirds Corporation sells goods on the installment basis. For the year ended December 31, 2011, the following were reported: Cost of installment sales P525,000 Loss on repossessions 13,500 Fair value of repossessed merchandise 112,500 Account defaulted 180,000 Deferred gross profit, December 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lovebirds Corporation sells goods on the installment basis. For the year ended December 31, 2011, the following were reported:

Cost of installment sales

P525,000

Loss on repossessions

13,500

Fair value of repossessed merchandise

112,500

Account defaulted

180,000

Deferred gross profit, December 31

108,000

How much was collected during the year?
a. 210,000
b. 264,000
c. 390,000
d. 415,715

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