Plantito Company began operations on January 1, 2019 and appropriately uses the installment method of accounting. The following data are available for 2019 and 2020. 2019 2020 Installment Sales P1,200,000 P1,500,000 Cash collections from: 2019 sales P400,000 P500,000 2020 sales P600,000 Gross Profit on sales 30% 40% The realized gross profit for 2020 is a. P240,000 c. P440,000 b. P390,000 d. P600,000

Plantito Company began operations on January 1, 2019 and appropriately uses the installment method of accounting. The following data are available for 2019 and 2020. 2019 2020 Installment Sales P1,200,000 P1,500,000 Cash collections from: 2019 sales P400,000 P500,000 2020 sales P600,000 Gross Profit on sales 30% 40% The realized gross profit for 2020 is a. P240,000 c. P440,000 b. P390,000 d. P600,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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