EX-1. On July 1, 2016, MUSCALA Motors, which maintains a perpetual inventory records sold a new automobile to LAX for P 1,700,000. The car costs the seller P 1,301,250. The following were the payment scheme in order: 1. 30% down payment 2. P 160,000 allowance on an old car traded 3. The balance being payable in equal monthly installments The monthly amortization amounts to P 60,000 inclusive of 12% interest on the unpaid amount of the obligation. The car traded in has a wholesale value of P 240,000 after expending reconditioning costs of P 45,000.

After paying three installments, the buyer suffered major financial setback incapacitating him to continue paying so the car was subsequently repossessed. When reacquired, the car was appraised to have a fair value of P 600,000. What is the realized gross profit on installment sales during the year?

EX-2. KCP Inc. sells cellphones on an installment basis. For the year ended December 31, 2016, the following were reported: Cost of installment sales P 1,050,000 Loss on repossessions 27,000 Fair value of repossessed merchandise 225,000 Account defaulted 360,000 Deferred Gross Profit, December 31 Adjusted 216,000 What is the collections during the year?

EX-3. BULLOCK Inc. sells automatic weapons costing P 700,000 at a price of P 1,200,000. CARUSO Corp. buys a dozen of automatic weapons on installment and tradein six of its old weapons at a trade-in value of P 300,000 each. BEX-1. On July 1, 2016, MUSCALA Motors, which maintains a perpetual inventory records sold a new automobile to LAX for P 1,700,000. The car costs the seller P 1,301,250. The following were the payment scheme in order: 1. 30% down payment 2. P 160,000 allowance on an old car traded 3. The balance being payable in equal monthly installments The monthly amortization amounts to P 60,000 inclusive of 12% interest on the unpaid amount of the obligation. The car traded in has a wholesale value of P 240,000 after expending reconditioning costs of P 45,000. After paying three installments, the buyer suffered major financial setback incapacitating him to continue paying so the car was subsequently repossessed. When reacquired, the car was appraised to have a fair value of P 600,000. What is the realized gross profit on installment sales during the year?

EX-2. KCP Inc. sells cellphones on an installment basis. For the year ended December 31, 2016, the following were reported: Cost of installment sales P 1,050,000 Loss on repossessions 27,000 Fair value of repossessed merchandise 225,000 Account defaulted 360,000 Deferred Gross Profit, December 31 Adjusted 216,000 What is the collections during the year?

EX-3. BULLOCK Inc. sells automatic weapons costing P 700,000 at a price of P 1,200,000. CARUSO Corp. buys a dozen of automatic weapons on installment and trade In six of its old weapons at a trade-in value of P 300,000 each. BULLOCK spends P 25,000 to recondition the old guns and sells them for P 315,000. BULLOCK expects a 10 percent gross profit from the sale of used guns. What is the over-allowance granted by BULLOCK on the trade-in transaction? EX-4. On March 1, 2016, the GABRIEL Company sold machine for P 155,000. The machine costs P 100,000. The customer is allowed a trade-in allowance of P 50,000 for an old machine. A down payment of P 45,000 was made and the balance is to be paid in 2 12 monthly installments of P 5,000 each payable at the end of each month beginning March 31. The old machine is estimated to have a resale value of P 70,000 after incurring a reconditioning cost of P 7,500. The seller expects a 20% profit from the sale of used machine; commission is 5%. 1. What is the fair market value of the machine received? 2. What is the gross profit rate? 3. What is the correct adjusted entry to record the installment sales?ULLOCK spends P 25,000 to recondition the old guns and sells them for P 315,000. BULLOCK expects a 10 percent gross profit from the sale of used guns. What is the over-allowance granted by BULLOCK on the trade-in transaction?

EX-4. On March 1, 2016, the GABRIEL Company sold machine for P 155,000. The machine costs P 100,000. The customer is allowed a trade-in allowance of P 50,000 for an old machine. A down payment of P 45,000 was made and the balance is to be paid in 2 12 monthly installments of P 5,000 each payable at the end of each month beginning March 31. The old machine is estimated to have a resale value of P 70,000 after incurring a reconditioning cost of P 7,500. The seller expects a 20% profit from the sale of used machine; commission is 5%. 1. What is the fair market value of the machine received? 2. What is the gross profit rate? 3. What is the correct adjusted entry to record the installment sales?