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Please show solution for this questions, thanks The Bass Co., on September 30,201, sold for P48,000 a piano costing P30,000. The down payment was P4,800
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The Bass Co., on September 30,201, sold for P48,000 a piano costing P30,000. The down payment was P4,800 and an equal amount was to be paid at the end of each succeeding month. Monthly interest of 1% yield rate was to be charged on the unpaid balance of the installment contract, with payment applying first to accrued interest and the balance to principal. After paying a total of P19,200, the customer defaulted and the piano was correspondingly repossessed on February 28,202, at which time it was estimated to have a value of P16,800 on a depreciated cost basis. Bass Co. uses a perpetual inventory system and records the total deferred gross profit at the time of sale. 13. How much was the realized gross profit at the end of 201 a. 7,200 c. 6,764 b. 7,039 d. 6,489 14. How much was the gain or loss on the repossession in 202 ? a. 1,927 c. 2,124 b. 1,867 d. 1,678Step by Step Solution
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