Portia Co. uses the installment method of income recognition. The entity provided the following pertinent data: 20x1 20x2 20x3 Installment sales P600,000 P750,000 P720,000 Cost of goods sold 450,000 570,000 504,000 Balance of deferred gross profit at year-end 20x1 105,000 30,000 - 20x2 108,000 18,000 20x3 144,000 REQUIRED: 1. Total balance of Installment Receivable on December 31, 20x3 ____________ Reginald Company, which began operations on January 5, 20x1, appropriately uses the install method of revenue recognition. The following information pertains to the operations for 20x1 and 20x2: 20x1 20x2 Sales P600,000 P900,000 Collections from: 20x1 sales 200,000 100,000 20x2 sales 300,000 Accounts written off from: 20x1 sales 50,000 150,000 20x2 sales 300,000 Gross profit rates 30% 40% REQUIRED: 2. Deferred gross profit on December 31, 20x2 ______________ 3. Realized gross profit in 20x2 ______________
Portia Co. uses the installment method of income recognition. The entity provided the following pertinent data:
20x1 20x2 20x3
Installment sales P600,000 P750,000 P720,000
Cost of goods sold 450,000 570,000 504,000
Balance of deferred gross profit at year-end
20x1 105,000 30,000 -
20x2 108,000 18,000
20x3 144,000
REQUIRED:
1. Total balance of Installment Receivable on December 31, 20x3 ____________
Reginald Company, which began operations on January 5, 20x1, appropriately uses the install method of
revenue recognition. The following information pertains to the operations for 20x1 and 20x2:
20x1 20x2
Sales P600,000 P900,000
Collections from:
20x1 sales 200,000 100,000
20x2 sales 300,000
Accounts written off from:
20x1 sales 50,000 150,000
20x2 sales 300,000
Gross profit rates 30% 40%
REQUIRED:
2. Deferred gross profit on December 31, 20x2 ______________
3. Realized gross profit in 20x2 ______________
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
