On January 1, 2007 Blue Company commenced its sales of gas stoves. Separate accounts were set...

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On January 1, 2007 Blue Company commenced its sales of gas stoves. Separate accounts were set up for installment and cash sales, but perpetual inventory record was not kept. Onthe installment sales a down payment of 1/3 was required, with the balance payment in 18 equal monthly installments. The company adjusted its records at the end of each year to the "installment basis" by use of a deferred gross profit account. When contracts were defaulted the unpaid balance were charged to a bad debts expense account, and sales of repossessed merchandise were credited to this account. At the end of the year the expense account was adjusted to reflect the actual loss. The transactions of the Blue Company are as follows: Sales: New gas stoves for cash. 2007 P27,000 2008 P 37,000 New gas stoves on installment (including the 1/3 cash down payment) 235,000 330,000 Repossessed gas stove.... 750 875 Purchases...... .193,000 215,000 Physical inventories at December 31: New gas stoves at cost... 45,500 60,000 Repossessions at appraised value. Unpaid balances of installment contracts default; 180 200 2007 sales.... 2008 sales... 3,580 4,650 3,750 Cash collections on installment contracts; exclusive of down payments: 2007 sales.... 2008 sales.... 54,000 77,000 70,000 Compute the (1) balance of Installment Accounts Receivable-2007 on December 31, 2008, and (2) The realized gross profit for the year 2008. On January 1, 2007 Blue Company commenced its sales of gas stoves. Separate accounts were set up for installment and cash sales, but perpetual inventory record was not kept. Onthe installment sales a down payment of 1/3 was required, with the balance payment in 18 equal monthly installments. The company adjusted its records at the end of each year to the "installment basis" by use of a deferred gross profit account. When contracts were defaulted the unpaid balance were charged to a bad debts expense account, and sales of repossessed merchandise were credited to this account. At the end of the year the expense account was adjusted to reflect the actual loss. The transactions of the Blue Company are as follows: Sales: New gas stoves for cash. 2007 P27,000 2008 P 37,000 New gas stoves on installment (including the 1/3 cash down payment) 235,000 330,000 Repossessed gas stove.... 750 875 Purchases...... .193,000 215,000 Physical inventories at December 31: New gas stoves at cost... 45,500 60,000 Repossessions at appraised value. Unpaid balances of installment contracts default; 180 200 2007 sales.... 2008 sales... 3,580 4,650 3,750 Cash collections on installment contracts; exclusive of down payments: 2007 sales.... 2008 sales.... 54,000 77,000 70,000 Compute the (1) balance of Installment Accounts Receivable-2007 on December 31, 2008, and (2) The realized gross profit for the year 2008.