How much is the Realized Gross Profit in 2008?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 1BCRQ
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Problem 13. LL Incorporated which began operating on January 2008 appropriately uses the installment
method of accounting. The following information pertains to LL's operations in 2008.
Installment sales
P600,000
Regular sales
800,000
Cost of Installment sales
270,000
Cost of Regular sales
Operating expenses
440,000
200,000
Collections on installment sales
150,000
Collections on regular sales
200,000
How much is the Realized Gross Profit in 2008?
a. P690,000
b. P242,500
c. P82,500
d. P442,500
Transcribed Image Text:Problem 13. LL Incorporated which began operating on January 2008 appropriately uses the installment method of accounting. The following information pertains to LL's operations in 2008. Installment sales P600,000 Regular sales 800,000 Cost of Installment sales 270,000 Cost of Regular sales Operating expenses 440,000 200,000 Collections on installment sales 150,000 Collections on regular sales 200,000 How much is the Realized Gross Profit in 2008? a. P690,000 b. P242,500 c. P82,500 d. P442,500
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