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owance of P194,400. Cash of P32,400 was paid in paid in ten monthly installments due at the end of It would require P8,100 to recondition the used c

owance of P194,400. Cash of P32,400 was paid in paid in ten monthly installments due at the end of It would require P8,100 to recondition the used c

Intermediate Accounting: Reporting And Analysis
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
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 6P: Non-Interest-Bearing Note Payable: Present Value On January 1, 2019, Northern Manufacturing Company...
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How much is the total realized gross profit in 2020?

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How much is the under (over) allowance in trade in? 

Triple A Company sold cellphones on installment basis on July 1, 2020. The unit cost to the company was P388,800, but the installment selling price was set at P550,800. Terms of payment included the acceptance of used cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded in cellphone with the balance to be paid in ten monthly installments due at the end of each month commencing the month after the month of sale. It would require PS,100 to recondition the used cellphones so that it could be resold at P162,000. A 15% gross profit was usual from the sale of used cellphones.
Transcribed Image Text:Triple A Company sold cellphones on installment basis on July 1, 2020. The unit cost to the company was P388,800, but the installment selling price was set at P550,800. Terms of payment included the acceptance of used cellphones with trade in allowance of P194,400. Cash of P32,400 was paid in addition to the traded in cellphone with the balance to be paid in ten monthly installments due at the end of each month commencing the month after the month of sale. It would require PS,100 to recondition the used cellphones so that it could be resold at P162,000. A 15% gross profit was usual from the sale of used cellphones.
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