LEO Company sold an inventory costing P110,000 for P150,000 on January 1, 2016. A 10% down payment was made and the balance is payable on December 31, 2016. The interest rate is 12%. Selling expenses related with the installment sale is P5,000. How much is the Revenue to be recognized in 2016?

2. EOL Company bills its branch at 140% of cost. During 2022, goods billed at P866,250 were shipped to the branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000.  Purchases from outsiders is P326,250. How much is the Cost of Goods Available for Sale of the branch?

3. EOL Company has a branch in Batangas. During 2016, the home office shipped to the branch merchandise billed at P150,000 including markup of 20% on cost. The branch reports opening and closing inventories of P90,000 and P120,000, respectively, while the home office has a closing inventory of P210,000 which includes merchandise which are held on consignment valued at P10,000. Both locations use the periodic inventory system. How much is the Consolidated Ending Inventory?

Answer rating: 100% (QA)

1 Revenue to be recognized in 2016 for the installment sale To calculate the revenue recognized in 2016 we need to determine the Gross Profit on the s... View the full answer