GCASH accounts for sales under the installment method. On January 1, 2020 its ledger accounts included the following balances: Installment Receivable, 2018 P 38,500 Installment Receivable, 2019 155,000 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account balances before adjustment were as follows: Installment Receivable, 2018 P 0 Installment Receivable, 2019 42,000 Installment Receivable, 2020 100,500 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Deferred Gross Profit, 2020 75,810 The total realized gross profit on December 31, 2020 is: a. P90,350 c. P98,910 b. P97,510 d. P97,350
GCASH accounts for sales under the installment method. On January 1, 2020 its ledger accounts included the following balances: Installment Receivable, 2018 P 38,500 Installment Receivable, 2019 155,000 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account balances before adjustment were as follows: Installment Receivable, 2018 P 0 Installment Receivable, 2019 42,000 Installment Receivable, 2020 100,500 Deferred Gross Profit, 2018 11,550 Deferred Gross Profit, 2019 62,000 Deferred Gross Profit, 2020 75,810 The total realized gross profit on December 31, 2020 is: a. P90,350 c. P98,910 b. P97,510 d. P97,350
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 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
Related questions
Question
GCASH accounts for sales under the installment method. On January 1, 2020 its ledger
accounts included the following balances:
Installment Receivable, 2018 P 38,500
Installment Receivable, 2019 155,000
Deferred Gross Profit, 2018 11,550
Deferred Gross Profit, 2019 62,000
Installment Sales in 2020 were made at 42% gross profit rate. December 31, 2019 account
balances before adjustment were as follows:
Installment Receivable, 2018 P 0
Installment Receivable, 2019 42,000
Installment Receivable, 2020 100,500
Deferred Gross Profit, 2018 11,550
Deferred Gross Profit, 2019 62,000
Deferred Gross Profit, 2020 75,810
The total realized gross profit on December 31, 2020 is:
a. P90,350 c. P98,910
b. P97,510 d. P97,350
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning