company sold merchandise on installment. For the past three years, the following data were available:

2020 2021 2022

Installment Sales 5,000,000 8,000,000 15,000,000

Cost of Installment Sales 3,500,000 4,800,000 8,700,000

Deferred Gross Profit, ending balance: 2020 525,000 150,000

2021 680,000 106,000

2022 5,040,000

Requirements:

1.Compute the balance of installment accounts receivable as of December 31, 2022.

2.Compute for the total realized gross profit as of December 31, 2022.

3.Assume that a buyer installment sales in 2021 defaulted and item was repossessed. Assume further that the fair value of the asset repossessed was P50,000 and the related installment receivable was P30,000. What is the gain or loss on repossession.

4.Assume that the fair value of the merchandise repossessed is not determinable at the date of repossession, however the estimated selling price of the merchandise was P60,000 after reconditioning cost of P15,000. How much is the gain or loss on repossession?