Mr. Manahan is a dealer in appliance who sells on an installment basis. A refrigerator which originally cost P9,240 was sold by him for P16,500 to Johnny who made a down payment of P2,200 but defaulted in subsequent payments. Mr. Manahan repossessed the refrigerator at an appraised value of P4,600. To improve its salability, he expended P600 for reconditioning. He was able to sell the refrigerator to Phoebe for P10,000 at a down payment of the first installment of P2,500.

1.)  How much is RGP from the first installment sale? 

2.)  What is the entry to record the repossession?  

3.)  What is the cost of installment sale for the second sale?  

4.)   What is the gross profit rate for the second installment sale?  

5.)   How much is the realized gross profit from the second installment sale?