PROBLEM The following data pertain to instalment sales of Mickey's store: Down payment, 20%. • Instaiment sales: P545,000 in Year 1; P785,000 in Year 2; and P968,000 in Year 3. • Mark-up on cost, 35%. • Collections after down payment 40% in the year of sale, 35% in the year after sale, and 25% in the third year. Note: Round off the decimal factors to the nearest whole number. Sample - 35.74% to 36% REQUIREMENTS: 1. The realized gross profit in year 1 2. The realized gross profit in year 3 3. The unrealized gross profit for instaiment sales made during Year 2, as of the end of Year 2
PROBLEM The following data pertain to instalment sales of Mickey's store: Down payment, 20%. • Instaiment sales: P545,000 in Year 1; P785,000 in Year 2; and P968,000 in Year 3. • Mark-up on cost, 35%. • Collections after down payment 40% in the year of sale, 35% in the year after sale, and 25% in the third year. Note: Round off the decimal factors to the nearest whole number. Sample - 35.74% to 36% REQUIREMENTS: 1. The realized gross profit in year 1 2. The realized gross profit in year 3 3. The unrealized gross profit for instaiment sales made during Year 2, as of the end of Year 2
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 1BCRQ
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