Question: 20x1 Rooster Co. uses the installment sales method. Relevant information follows: 20x2 Sales 300,000 480,000 Cost of sales 240,000 336,000 Installment receivable - 20x1 180,000

20x1 Rooster Co. uses the installment sales

20x1 Rooster Co. uses the installment sales method. Relevant information follows: 20x2 Sales 300,000 480,000 Cost of sales 240,000 336,000 Installment receivable - 20x1 180,000 60,000 Installment receivable - 20x2 360,000 Rooster Co. repossessed a property that was sold in 20x1 for P50,000. Total collections from this sale were P24,000. Rooster Co. expects to resell the property for $30,000 after reconditioning costs of 24,000. The normal profit margin on resale of repossessed property is 30%. 3. How much is the gain or loss on repossession? 4. How much is the total realized gross profit in 20x2? 5. How much is the profit recognized in 20x1

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