On June 1, 2019, Inispree Enterprises sells a new car costing P545,280 for P1,360,800. A used car is accepted as a down payment, P192,00 being allowed on the trade-in. The used car can be resold for P291,600 after reconditioning costs of P38,880. The company expected to make a 20% gross profit on the sales of used cars. In 2019, P104,000 cash was collected on the contract.

 

1. Determine the realized gross profit for 2014. 179,040
2. Determined the balance of installment receivable as of December 31, 2019.
3. How much is the gross profit rate?