Marian Company sells furniture for cash and on the installment plan. Entries to record cost of sales are made monthly. The trial balance on December 31, 2011 is as follows: Marian Company Trial Balance December 31, 2011 Cash P 90,750 Installment contracts receivable, 2010 30,000 Installment contracts receivable, 201 1 95,000 Inventory - New merchandise 77,500 Inventory - Repossessed merchandise 15,000 Accounts Payable P 60,875 Deferred gross profit, 2010 27,000 Ordinary Share 125,000 Accumulated Profits 52,500 Cash sales 265,000 Installment sales 187,500 Cost of sales 206,250 Cost of installment sales 121,875 Gain or loss on repossessions 500 Selling and administrative expenses 82,500 P719,375 P719,375 The accountant has prepared the following analysis of cash receipts for the year: Cash sales P265.000 Installment contracts receivable, 2010 65.000 Installment contracts receivable, 2011 92.500 Others 22.500 Total P445.000 Data pertaining to the repossession recorded during the year are summarized as follows: 2010 Uncollected balance P5,000 Loss on repossession 500 Repossessed merchandise 3,000 Requirements: 1. From the trial balance and accompanying information, compute the gross profit rate on installment sales for 2010 and 201 1. 2. Prepare adjusting and closing entries as of December 31, 2011 under the installment method of accounting. 3. Prepare an Income Statement for the year ended December 31, 2011