Answered: On April 1, 2021, JPG Company sold for…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...

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On April 1, 2021, JPG Company sold for P84,000 a stereo which paid had a cost of P54,600. A down payment of P9,000 was made with the provision that additional payments of P7,500 be made monthly thereafter. Interest was to be charged at a monthly rate of 2% on the unpaid balance of the principal; the monthly installment was to apply first to the interest then to the balance of the principal. After completing four months installment the customer defaulted and the stereo was repossessed. At this time, the market value of the stereo was estimated to be P22,500. What is the net income (loss) at the end of the year?

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