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An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022.  The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows:             Present value of annuity of 6% over 4 periods                 3.4651             Present value of annuity of 12% over 4 periods               3.0373 Determine the total amount of sales in 2022

An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022.  The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows:             Present value of annuity of 6% over 4 periods                 3.4651             Present value of annuity of 12% over 4 periods               3.0373 Determine the total amount of sales in 2022

Intermediate Accounting: Reporting And Analysis
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
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022.  The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows:

            Present value of annuity of 6% over 4 periods                 3.4651
            Present value of annuity of 12% over 4 periods               3.0373

Determine the total amount of sales in 2022 

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