Post Meridian (PM) Co. uses the installment sales method. PM Co. sells new merchandise costing Php...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Post Meridian (PM) Co. uses the "installment sales method." PM Co. sells new merchandise costing Php 10,000 to a customer for Php 16.000. PM Co. accepts old merchandise with fair value of Php 3,000 as traded-in and gives the customer a trade-in value of Php 4.000. PM Co. subsequently collects Php 6,000 from the customer. How much is the realized gross profit in the year of sale? Post Meridian (PM) Co. uses the "installment sales method." PM Co. sells new merchandise costing Php 10,000 to a customer for Php 16.000. PM Co. accepts old merchandise with fair value of Php 3,000 as traded-in and gives the customer a trade-in value of Php 4.000. PM Co. subsequently collects Php 6,000 from the customer. How much is the realized gross profit in the year of sale?
Expert Answer:
Answer rating: 100% (QA)
To calculate the realized gross profit using the installment sales method we need to determine the r... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
The following questions are used in the Kaplan CPA Review Course to study revenue recognition while preparing for the CPA examination. Determine the response that best completes the statements or...
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study revenue recognition...
-
Installment sales usually are accounted for by one of the following methods: (1) The profit may be recognized as earned in the period of sale; (2) The profit may be recognized on a proportionate...
-
John and Jane Darling are newlyweds trying to decide among several available rentals. Alternatives were scored on a scale of 1 to 5 (5 best) against weighted performance criteria, as shown in Table....
-
Find the curvature radius of a ray of light propagating in a horizontal direction close to the Earth's surface where the gradient of the refractive index in air is equal to approximately 3.108 m1. At...
-
Complete the following. a. Construct a table or a tree diagram of the situation. b. Find P(driver is female). c. Find P(driver is age 65 or over | driver is female). d. Find P(driver is age 65 or...
-
Accountants for Datsun, Inc., have assembled the following data for the year ended December 31, 2007: Requirement Prepare Datsun's statement of cash flows using the indirect method to report...
-
Probably the most important source of capital is human capital. For example, most medical doctors spend years learning to practice medicine. Doctors are willing to make large investments in their...
-
GOOG has beta of 1.1, NFLX has a beta of 1.3, and AVGO has beta of 0.9. The market risk premium is 8% and the risk free rate is 3%. You estimated that GOOG's stock price will growth to $1610 a share...
-
The first-quarter tax return needs to be filed for Prevosti Farms and Sugarhouse by April 15, 2022. For the taxes, assume the second February payroll amounts were duplicated for the March 4 and March...
-
A firm produces three goods (G1, G2, G3) and sells them in a perfectly competitive market. Table 1 shows the number of units (in thousands) sold of each good along with the total revenue (in 1,000$)...
-
Post software Incorporated has a quick ratio of 2 . 0 0 X 2 4 , 7 5 0 in cash $ 1 3 , 7 5 0 in accounts receivable some inventory total current assets of 5 5 , 0 0 0 and total current liabilities of...
-
Marketing Management EXPLAIN THE FOLLOWING WITH EXAMPLES Developing Brand positioning Positioning Value positioning the competitive frame of reference category membership Examine competition from...
-
The trial balance of Lax Ltd at 3 0 June 2 0 2 4 was as shown below. LAX LTD Trial Balance as at 3 0 June 2 0 2 4 Debit Credit Share capital ( ordinary shares issued at $ 2 , fully paid ) $ 2 0 0 ...
-
Suppose that you own 100 shares of the underlying stock. You would like to use options to protect the returns from your ownership this stock for the life of this option. More specifically, you would...
-
Revise your part before discuss the case law. Provide your revision about Care, Skill and Dilligence in Corporation Act 2 0 0 1 includes statutory law, general law duties, defences and remedies. ...
-
The airline industry is frequently used as an example of an oligopoly industry. Consider the following analytic problems: 1. Consider Air Train and BigJet, two airlines that currently fly non-stop...
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
Courtney Meehan has trouble keeping her debits and credits equal. During a recent month, Courtney made the following accounting errors: a. In preparing the trial balance, Courtney omitted a $5,000...
-
The trial balance of Love to Learn Child Care does not balance. The following errors are detected: a. Cash is understated by $1,800. b. A $3,800 debit to Accounts Receivable was posted as a credit....
-
If total debits equal total credits on the trial balance, is the trial balance error- free? Explain your answer.
-
Two springs in series support weight \(W\), as shown in Figure 2.62. If these springs are replaced by a single spring, find the equivalent stiffness as well as the period of oscillation. The solution...
-
A pendulum of mass \(m\) and mass moment of inertia \(I_{O}\) is suspended from a hinge, as shown in Figure 2.63. The center of gravity is located a distance \(h\) from the hinge. For small...
-
A bifilar pendulum of length \(2 a\) is suspended with two vertical strings, each of length \(l\), as shown in Figure 2.64. (Bifilar means fitted with or involving the use of two threads or wires.)...
Study smarter with the SolutionInn App