In 2009, a merchandise was sold on installment basis by MB Company for P160,000 at a gross profit of 25% on cost. During the year, a total of P85,000, including interest of P25,000 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P70,000 after reconditioning cost of P8,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession?

In 2009, a merchandise was sold on installment basis by MB Company for P160,000 at a gross profit of 25% on cost. During the year, a total of P85,000, including interest of P25,000 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P70,000 after reconditioning cost of P8,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 1BCRQ

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