on Ihstállment. Information presented below relates to Edith's operations for the last three years: 2021 2020 2019 Installment Sales 1,075,000 Gross margin on cost 66 2/3% 33 1/3% 25% Outstanding Installment Receivable as of December 31: From 2021 Sales 698,750 From 2020 Sales 234,000 585,000 From 2019 Sales 330,400 865,400 During 2020, Edith repossessed an automobile that it has sold for P160,000 on installment basis in 2019. The installment receivable balance related to this repossessed merchandise is P64,000. The company expects to resell the repossessed item for P56,000 before any reconditioning cost. Reconditioning cost amount to P7,500. The company's normal profit margin on sale of used automobile is 15%. Compute for gain/loss on repossession O (9,975) O (11,100) O 11,100 O (3,600) O 3,600
on Ihstállment. Information presented below relates to Edith's operations for the last three years: 2021 2020 2019 Installment Sales 1,075,000 Gross margin on cost 66 2/3% 33 1/3% 25% Outstanding Installment Receivable as of December 31: From 2021 Sales 698,750 From 2020 Sales 234,000 585,000 From 2019 Sales 330,400 865,400 During 2020, Edith repossessed an automobile that it has sold for P160,000 on installment basis in 2019. The installment receivable balance related to this repossessed merchandise is P64,000. The company expects to resell the repossessed item for P56,000 before any reconditioning cost. Reconditioning cost amount to P7,500. The company's normal profit margin on sale of used automobile is 15%. Compute for gain/loss on repossession O (9,975) O (11,100) O 11,100 O (3,600) O 3,600
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 24E: Notes Receivable and Income On January 1, 2019, Pitt Company sold a patent to Chatham Inc. which had...
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