How much is the total realized gross profit in 2020?How much is the monthly payment?How much is the under (over) allowance in trade in? Triple A Company sold cellphones on installment basis on July 1, 2020. The unit cost to the company wasP388,800, but the installment selling price was set at P550,800. Terms of payment included the acceptance ofused cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded incellphone with the balance to be paid in ten monthly installments due at the end of each month commencingthe month after the month of sale. It would require PS,100 to recondition the used cellphones so that it couldbe resold at P162,000. A 15% gross profit was usual from the sale of used cellphones.

The gross profit ratio (GP ratio) is a financial statistic that divides a company's gross profit by…

Answered: owance of P194,400. Cash of P32,400 was…

owance of P194,400. Cash of P32,400 was paid in paid in ten monthly installments due at the end of It would require P8,100 to recondition the used c

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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Question

How much is the total realized gross profit in 2020?

How much is the monthly payment?

How much is the under (over) allowance in trade in?

Triple A Company sold cellphones on installment basis on July 1, 2020. The unit cost to the company was
P388,800, but the installment selling price was set at P550,800. Terms of payment included the acceptance of
used cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded in
cellphone with the balance to be paid in ten monthly installments due at the end of each month commencing
the month after the month of sale. It would require PS,100 to recondition the used cellphones so that it could
be resold at P162,000. A 15% gross profit was usual from the sale of used cellphones.

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