Cloudy Co. uses the installment sales method of account Use the following information for the next two questions: Information on Cloudy's past operations follows; Installment sales Cost of sales Gross profit rate Installment accounts receivable, Dec. 31: - From 20x1 installment sales - From 20x2 installment sales - From 20x3 installment sales 20x1 20x2 20 300,000 405,000 495 210,000 243,000 321 40% 1% 30% 180,000 135,000 300,000 195,000 390,000 60.000 In 20x3, a customer defaulted. Accordingly, the merchandise with an estimated value of P15,000 was repossessed. The sale was made in 20x1 and the unpaid balance on the date of repossession P22,500. 15. How much was the total realized gross profit in 20x3? a. 98,400 (AICPA) d. 79,500 c. 89,400 was d. 94,500 16. How much was the gain (loss) on the repossession in 20x3? a. (690) (AICPA) b. 690 (750) d. 750 Trade-in Use the following information for the next two questions: Dawn Co. uses the installment sales method. Dawn Co. sell merchandise costing P20,000 for P32,000 and accepts o merchandise with fair value of P12,000 as trade-in. Dawn C