PROBLE On January 2, 2021, Apple Co. sold merchandise to Mango, Inc. for P1,500,000. The cost of items to Apple was P1,000,000. Mango gave Apple P300,000 cash and P1,200,000 note payable in 4 annual installments of P300,000 plus 12% interest. Mango made the 1st principal and interest payment on December 31, 2021. Required: 1. How much is to be recognized as Installment sales during the year 2021? 2. How much is the net income related with the sale on installment in 2021?

PROBLE On January 2, 2021, Apple Co. sold merchandise to Mango, Inc. for P1,500,000. The cost of items to Apple was P1,000,000. Mango gave Apple P300,000 cash and P1,200,000 note payable in 4 annual installments of P300,000 plus 12% interest. Mango made the 1st principal and interest payment on December 31, 2021. Required: 1. How much is to be recognized as Installment sales during the year 2021? 2. How much is the net income related with the sale on installment in 2021?

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10P

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