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ABC Co., which began operations on January 1, 2019, uses the installment method of accounting to record revenues. The following information is available for the years ended December 31, 2019 and 2020 2019 2020 Installment sales P1,000,000 P1,800,000 Gross profit realized on sales made in: 2019 150,000 90,000 2020 200,000 Gross profit percentages 30% 40% What amount of instalment accounts receivable should ABC report in its December 31, 2020, statement of financial position? Your answer ABC Co. sells residential subdivision lots on installment basis. The following data were taken from the company's accounting records as of December 31, 2020. The company uses a uniform gross profit rate: Installment accounts receivable: January 1, 2020 December 31, 2020 Unrealized gross profit - January 1, 2020 Installment sales - 2019 Installment sales - 2020 P1,510,000 1,680,000 679,500 1,180,000 1,900,000 How much is the gross profit realized during the year 2020? Your answer Given: ABC Co. sells construction equipment on installment basis. Below are the data related to the company's operations for three years: Cost of installment sales Gross profit rates on sales 2020 2019 2018 P8,765,625 P7,700,000 P4,950,000 32% 30% 34% Installment accounts receivable, 12/31 From 2020 sales From 2019 sales From 2018 sales 9,728,125 3,025,000 8,387,500 1,512,500 4,812,500 2 points ITEM# Y1AL3 How much is the total realized gross profit for 2020? Your answer Given: ABC Co. appropriately uses the installment sales method of recognizing revenue. On December 31, 2020, the accounting records show unadjusted balances of the following: Installment accounts receivable - 2018 Installment accounts receivable - 2019 Installment accounts receivable - 2020 Deferred gross profit - 2018 Deferred gross profit - 2019 Deferred gross profit - 2020 Gross profit rates: 2018 2019 2020 P12,000 40,000 130,000 10,500 28,900 96,000 35% 34% 32% 2 points ITEM# WGF93 How much is the balance of the installment accounts receivable as at January 1, 2020? Your answer ITEMH YGP62 On January 2, 2019, ABC Co. sold a used equipment to XYZ, Inc for P900,000, resulting in again of P270,000 On that date is paid P150,000 cash and signed a P750,000 note bearing interest at 10% The note was payable in three annual installments of P250,000 beginning January 2, 2020. ABC appropriately accounted for the sale under the installment method. XYZ made a timely payment of the first installment on January 2. 2020, of P325,000, which included accrued interest of P75.000 What amount of deferred gross profit should ABC report at December 31, 2020? Voo 2 points ITEMA XWB21 ABC Co. uses the installment method of accounting and has the following data at year end Gross margin on cost Unrealized gross profit Cash collection including down payments 66 2/3% P192,000 360,000 What was the total amount of sale on installment basis
