Sales: Presented below are the information taken from the books of Four Sisters Company: 2013 2014...

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Sales: Presented below are the information taken from the books of Four Sisters Company: 2013 2014 Regular Installment Cost of goods sold: Regular Installment Operating Expenses Collections on account from: Regular sales Installment sales- 2013 Installment sales-2014 P 125,000 62, 500 75,000 31, 250 5,000 100, 000 37, 500 P 187, 500 100, 000 112, 500 45,000 10, 250 137, 500 25,000 62, 500 Compute for the following requirements if Four Sisters Company uses cost recovery method for its installment sales transactions. 11. What is the net income for the period ended December 31, 2013? 12. What is the net income for the period ended December 31, 2014? 13. How much is the total gross profit realized (including gross profit from regular sales) for the year 2013? 14. How much is the total gross profit realized (including gross profit from regular sales) for the year 2014? 15. How much is the Adjusted deferred gross profit - 2013 in December 31, 2014? 16. How much is the Adjusted deferred gross profit - 2014 in December 31, 2014? 17. How much is the installment receivable -2013 balance in December 31, 2014? 18. How much is the installment receivable -2014 balance in December 31, 2014? 19. How much is the unrecovered cost in December 31, 2014 with respect to 2013 installment sales? 20. How much is the unrecovered cost in December 31, 2014 with respect to 2014 installment sales? Sales: Presented below are the information taken from the books of Four Sisters Company: 2013 2014 Regular Installment Cost of goods sold: Regular Installment Operating Expenses Collections on account from: Regular sales Installment sales- 2013 Installment sales-2014 P 125,000 62, 500 75,000 31, 250 5,000 100, 000 37, 500 P 187, 500 100, 000 112, 500 45,000 10, 250 137, 500 25,000 62, 500 Compute for the following requirements if Four Sisters Company uses cost recovery method for its installment sales transactions. 11. What is the net income for the period ended December 31, 2013? 12. What is the net income for the period ended December 31, 2014? 13. How much is the total gross profit realized (including gross profit from regular sales) for the year 2013? 14. How much is the total gross profit realized (including gross profit from regular sales) for the year 2014? 15. How much is the Adjusted deferred gross profit - 2013 in December 31, 2014? 16. How much is the Adjusted deferred gross profit - 2014 in December 31, 2014? 17. How much is the installment receivable -2013 balance in December 31, 2014? 18. How much is the installment receivable -2014 balance in December 31, 2014? 19. How much is the unrecovered cost in December 31, 2014 with respect to 2013 installment sales? 20. How much is the unrecovered cost in December 31, 2014 with respect to 2014 installment sales?

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11To compute for the net income using the cost recovery method for installment sales transactions we need to recognize profit only after the cost of the item sold has been fully recovered We can use t... View the full answer