Malangas Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for
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Question:
Malangas Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms:
30% down payment on the date of sale and the balance is payable in four
equal annual installments every December 31. The cost of the equipment is
P1,200,000. Ignore the concept of time value of money.
Requirement:
Provide the journal entries for 2020 and 2021. Show all computations in good form.
Expert Answer:
Solution 2020 112020 Cash dr 600000 Installment receivable ac dr 1400000 To installment sales rev... View the full answer
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