ABC Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable. The following data relate to two years of operations. 2019 2020 Cost of sales P500,000 P600,000 Gross profit based on sales 25% 20% Collection from: 2019 sales 180,000 150,000 2020 sales 250,000 How much was the total realized gross for the year 2020? Prepare the journal entries for collection and realized profit.
ABC Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable.
The following data relate to two years of operations.
2019 2020
Cost of sales P500,000 P600,000
Gross profit based on sales 25% 20%
Collection from: 2019 sales 180,000 150,000
2020 sales 250,000
How much was the total realized gross for the year 2020? Prepare the
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