Please answer both subparts without handwritten typed #Cloudy Co. uses the installment sales method of accountInformation on Cloudy's past operations follows:Installment salesCost of salesGross profit rateInstallment accounts receivable, Dec. 31:From 20x1 installment sales- From 20x2 installment sales- From 20x3 installment sales20x120x2201300,000 405,000 495210,000 243,000 32130%40%180,000In 20x3, a customer defaulted. Accordingly, the merchandise withan estimated value of P15,000 was repossessed. The sale was madein 20x1 and the unpaid balance on the date of repossession wasP22,500.a. (690)60,000135,000300,000 195,000390,00015. How much was the total realized gross profit in 20x3?a. 98,400d. 79,500 c. 89,400d. 94,500(AICPA)(AICPA)16. How much was the gain (loss) on the repossession in 20x3?b. 690d. 750(750)

Name: Please answer both subparts without handwritten typed #Cloudy Co. uses
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Description: Please answer both subparts without handwritten typed #Cloudy Co. uses the installment sales method of accountInformation on Cloudy's past operations follows:Installment salesCost of salesGross profit rateInstallment accounts receivable, Dec. 31:From

ANSWER:- 15) Total realised gross profit in 20X3 = 94,500 (option D) 16) (Loss)/ Gain on Reposession…

Business

Accounting

Information on Cloudy's past operations follows: Installment sales Cost of sales Gross profit rate Installment accounts receivable, Dec. 31: - From 20x1 installment sales - From 20x2 installment sales From 20x3 installment sales of accounti 20x1 20x2 20 300,000 405,000 495 210,000 243,000 321 30% 40% 180,000 600 135,000 300,000 195,00 390,000 In 20x3, a customer defaulted. Accordingly, the merchandise with an estimated value of P15,000 was repossessed. The sale was made in 20x1 and the unpaid balance on the date of repossession 11

Information on Cloudy's past operations follows: Installment sales Cost of sales Gross profit rate Installment accounts receivable, Dec. 31: - From 20x1 installment sales - From 20x2 installment sales From 20x3 installment sales of accounti 20x1 20x2 20 300,000 405,000 495 210,000 243,000 321 30% 40% 180,000 600 135,000 300,000 195,00 390,000 In 20x3, a customer defaulted. Accordingly, the merchandise with an estimated value of P15,000 was repossessed. The sale was made in 20x1 and the unpaid balance on the date of repossession 11

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cloudy Co. uses the installment sales method of accounting. Information on Cloudy's past operations follows: Installment sales Cost of sales Gross profit rate Installment accounts receivable, Dec 31: From 20x1 installment sales From 20x2 installment sales From 20x3 installment sales 390,000 20x1 300,000 210,000 30% 180,000 15. How much was the total realized gross profit in 20x3? a. 98,400 b. 79,500 c. 89,400 20x2 405,000 243,000 40% 16. How much was the gain (loss) in the repossession in 20x3? a. (690) b. 690 c. (750) 20x3 495,000 321,750 In 20x3, a customer defaulted. Accordingly, the merchandise with an estimated value of P15,000 was repossessed. The sale was made in 20x1 and the unpaid balance on the date of repossession was P22,500. 135,000 60,000 300,000 195,000 35% d. 94,500 d. 750
Problem 12Rosalie Co. uses the gross method to record sales made on credit. On June 10, 2020, it made sales of P100,000 with terms 2/10, n/30 to Finley Farms, Inc. On June 19, 2020, Rosalie received payment for 1/2 the amount due from Finley Farms. Rosalie’s fiscal year end is on June 30, 2020. What amount will be reported in the statement of financial position for the accounts receivable due from Finley farms, Inc.? _________Problem 13On the December 31, 2020 balance sheet of Mann Co., the current receivables consisted of the following: Trade accounts receivable 93,000 Allowance for uncollectible accounts (2,000) Claim against shipper for goods lost in transit (November 2020) 3,000 Selling price of unsold goods sent by Mann on consignment at 130% of cost (not included in Mann’s ending inventory) 26,000 Security deposit on lease of warehouse used for storing some inventories 30,000Total 150,000On December 31, 2020, the correct total of Mann’s current net receivables was _________.…
Accounts Receivable Analysis The following data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $171,400 $179,000 $186,000 Sales on account 1,068,720 1,003,750 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts receivable turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in receivables fill in the blank 3 days fill in the blank 4 days b. The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
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b. Compute for the balance of the installment receivable at the a. Compute for the realized gross profit in each of the years 20x1 1. Ring Co. uses the "installment sales method." Information o PROBLEM 4: FOR CLASSROOM DISCUSSION Installment sales method Ring Co.'s sales and collections is as follows: 20x1 us 20x2 1,000,000 700,000 1,300,000 Installment sales 845,000 Cost of sales Collections: 500,000 * 300,000 - from 20x1 sales 650,000 - from 20x2 sales Requirements: and 20x2. b. Compute for the balance of the installment receivable at t. end of each of the years 20x1 and 20x2. c. Compute for the deferred gross profit at the end of each of the years 20x1 and 20x2.
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Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Υ2 20Υ1 Accounts receivable, end of year $127,800 $135,000 $142,400 Sales on account 775,260 748,980 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 20Υ2 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. The collection of accounts receivable has improved • v. This can be seen in both the increase V in accounts receivable turnover and the decrease V in the collection period.
Accounts receivable analysisThe following data arc taken from the financial .statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $ 725,000 $ 650,000 $600,000 Sales on account 5,637,500 4,687,500 A. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. (Round to the nearest dollar and one decimal place)B. What conclusions can be drawn from these data concerning accounts receivable and credit policies?
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