4. ABC Co, uses the installment sales method. The following information was taken from ABCs records: How much is the total deferred gross profit on December 31,20h2 ? a. 324,000 b. 484,000 c. 284,000 d. 504,000 5. ABC Co. uses the installment sales method. ABC Co. has the folloving collection policy on its installment sales: - 20% down payment Page12 - Balance collectible as follows: 50% in the year of sale, 30% in the second year, and 20% in the third year. - Installment sales during 20x1, 20x2 and 20x3 were P1,200,000, P1,500,000 and P1,800,000, respectively. - Gross profit rate throughout the three years was 40% based on sales. Use the following information for the next three questions: Rooster Co uses the installment sales method. Relevant information follows: Rooster Co. repossessed a property that was sold in 201 for P50,000. Total collections from this sale were P24,000. Rooster Co, expects to resell the property for P30,000 after reconditioning costs of P4,000. The normal profit margin on resale of repossessed property is 30%