PROBLEM B: SUN CELL Company sold Cellphones on installment basis on July 1, 2023. The Unit cost to the company was P 388,800, but the installment selling price was set at P 550,800. Terms of payment included the acceptance of used Cellphones with trade in allowance of P 194,400. Cash of P 32,400 was paid in addition to the traded in Cellphones 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 P 8,100 to recondition the used Cellphones so that it could be resold for P 162,000. A 15% gross profit was usual from the sale of used cellphones. 23. How much is the fair value traded in merchandise? a. P 129,600 b. P 137,700 C. P 153,900 d. P 162,000 24. How much is the under / (over) allowance in trade in? a. P 56,700 over b. P 64,800 over C. P 56,700 under d. P 64,800 under 25. What is the Gross Profit rate? a. 15% b.) 20% C. 29.41% d. 36.84% 26. How much is the monthly payment? a.) P 32,400 b. P 40,000 C. P 48,600 d. P 51,840 27. How much is the total Realized Gross Profit in 2023? a. P 32,400 b P 58,320 C. P 64,800 d. P 71,280 1600-8, M6 =153910 PROBLEM C: Taylor Corp. which began operations in 2022, accounts for revenues using the installmer method. Taylor's sales and collections for the year were P60,000 and P35,000, respectively. Uncollectib ccounts receivable of P5,000 were written off during 2022. Taylor's gross profit rate is 30%.
PROBLEM B: SUN CELL Company sold Cellphones on installment basis on July 1, 2023. The Unit cost to the company was P 388,800, but the installment selling price was set at P 550,800. Terms of payment included the acceptance of used Cellphones with trade in allowance of P 194,400. Cash of P 32,400 was paid in addition to the traded in Cellphones 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 P 8,100 to recondition the used Cellphones so that it could be resold for P 162,000. A 15% gross profit was usual from the sale of used cellphones. 23. How much is the fair value traded in merchandise? a. P 129,600 b. P 137,700 C. P 153,900 d. P 162,000 24. How much is the under / (over) allowance in trade in? a. P 56,700 over b. P 64,800 over C. P 56,700 under d. P 64,800 under 25. What is the Gross Profit rate? a. 15% b.) 20% C. 29.41% d. 36.84% 26. How much is the monthly payment? a.) P 32,400 b. P 40,000 C. P 48,600 d. P 51,840 27. How much is the total Realized Gross Profit in 2023? a. P 32,400 b P 58,320 C. P 64,800 d. P 71,280 1600-8, M6 =153910 PROBLEM C: Taylor Corp. which began operations in 2022, accounts for revenues using the installmer method. Taylor's sales and collections for the year were P60,000 and P35,000, respectively. Uncollectib ccounts receivable of P5,000 were written off during 2022. Taylor's gross profit rate is 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:28. In its December 31, 2022, balance sheet, what amount should Taylor report as deferred revenue?
a.
P 10,500
b.
P 9,000
P 7,500
d. P 6,000
Transcribed Image Text:PROBLEM B: SUN CELL Company sold Cellphones on installment basis on July 1, 2023. The Unit cost to
the company was P 388,800, but the installment selling price was set at P 550,800. Terms of payment
included the acceptance of used Cellphones with trade in allowance of P 194,400. Cash of P 32,400 was
paid in addition to the traded in Cellphones 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 P 8,100 to
recondition the used Cellphones so that it could be resold for P 162,000. A 15% gross profit was usual from
the sale of used cellphones.
23. How much is the fair value traded in merchandise?
a. P 129,600
b. P 137,700
C. P 153,900
d. P 162,000
24. How much is the under / (over) allowance in trade in?
a. P 56,700 over
(b) P 64,800 over
C. P 56,700 under
d. P 64,800 under
25. What is the Gross Profit rate?
a. 15%
b.) 20%
C. 29.41%
d. 36.84%
26. How much is the monthly payment?
a. P 32,400
b. P 40,000
C. P 48,600
d. P 51,840
27. How much is the total Realized Gross Profit in 2023?
a. P 32,400
b P 58,320
C. P 64,800
d. P 71,280
1600-8, 16
-153910
PROBLEM C: Taylor Corp. which began operations in 2022, accounts for revenues using the installment
method. Taylor's sales and collections for the year were P60,000 and P35,000, respectively. Uncollectible
accounts receivable of P5,000 were written off during 2022. Taylor's gross profit rate is 30%.
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