20x2 Repossession 2. Morning Co. uses the "installment sales method." Information on Morning's sales is as follows: 20x1 Sales 150,000 Cost of sales 120,000 Installment receivable - 20x1, Dec. 31 90,000 Installment receivable - 20x2, Dec. 31 240,000 168,000 30,000 180,000 In 20x2, Morning Co. repossessed a property that was sold in 20x1 for P25,000. Total collections from this sale were P12,000. Morning Co. expects to resell the property for P15,000 after reconditioning costs of P2,000. The normal profit margin from resale. of repossessed inventory is 30%. Requirements: a. Compute for the gain or loss on repossession. b. Compute for the total realized gross profit in 20x2. C. Compute for the profit recognized in 20x2