During 2015, AD Company signed a non-cancelable contract with BARD Company to purchase 5,000, 50-kilos sacks of rice at P1,700 per sack with delivery to be made on June 1, 2020. On December 31, 2015, the price of rice had fallen to P1,680 per sack. On June 1, 2016, the price per sack of rice has further decrease to P1,540. In A’s December 31,2016 profit and loss, how much is reported as loss on purchase commitments?
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During 2015, AD Company signed a non-cancelable contract with BARD Company to purchase 5,000, 50-kilos sacks of rice at P1,700 per sack with delivery to be made on June 1, 2020. On December 31, 2015, the price of rice had fallen to P1,680 per sack. On June 1, 2016, the price per sack of rice has further decrease to P1,540. In A’s December 31,2016
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- During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units of goods at P 1,500 per unit with delivery to be made in 2021. On December 31,2020, the price had fallen to P 1,450 per unit. On March 1,2021, the price per unit further decreased to P 1,350. What is the amount of loss on purchase commitments recognized upon delivery of the 1,000 sacks on March 1,2021?Required to answer. Single choice.During 2016, Palazzo Company signed a non-cancelable contract with Crown Milling Company to purchase 1,000, 50- kilos sacks of rice at $2,700 per sack with delivery to be made in 2017. On December 31,2016, the price had fallen to $2,680 per sack. On April 1,2017, the price per sack of rice further decreased to $2,670. 1. Assuming that the price per 50 kilos sack of rice was $2,710 on April 1,2017, how much is the recovery of loss recognised on that date? 2. In Palazzo's December 31, 2016 profit and loss, how much is reported as loss on purchase commitments?Single line text. 3. What is the amount of loss on purchase commitments recognised upon delivery of the 1,000 sacks on April 1,2017?During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units of goods at P 1,500 per unit with delivery to be made in 2021. On December 31,2020, the price had fallen to P 1,450 per unit. On March 1,2021, the price per unit further decreased to P 1,350. What is the amount of loss on purchase commitments recognized upon delivery of the 1,000 sacks on March 1,2021?
- During 2020, BIOT Company signed a non-cancelable contract with BTS Company to purchase 5,000 units of goods at P 1,500 per unit with delivery to be made in 2021. On December 31,2020, the price had fallen to P 1,450 per unit. On March 1,2021, the price per unit further decreased to P 1,350. What is the amount of loss on purchase commitments recognized upon delivery of the 1,000 sacks on March 1,2021?During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units of goods at P 1,500 per unit with delivery to be made in 2021. On December 31,2020, the price had fallen to P 1,450 per unit. On March 1,2021, the price per unit further decreased to P 1,350. What is the amount of loss on purchase commitments recognized upon delivery of the 1,000 sacks on March 1,2021? a. P 50 b. P 750,000 c. P 250,000 d. P 500,000In 2009, a merchandise was sold on installment basis by MB Company for P80,000 at a gross profit of 25% on cost. During the year, a total of P42,500, including interest of P12,500 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P34,000 after reconditioning cost of P4,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession? a. (P 10,000) b. (P 14,000) c. P 10,000 d. (P 20,000)
- In 2009, a merchandise was sold on installment basis by MB Company for P160,000 at a gross profit of 25% on cost. During the year, a total of P85,000, including interest of P25,000 was collected on this contract. In 2011, no collection was made on this sale, and the selling price of the merchandise is P70,000 after reconditioning cost of P8,000 and a 15% gross profit was usual from sale of used merchandise. What is the gain (loss) on repossession?During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. 54. In December 31, 2021 income statement, what amount of loss on purchase commitment should be recognized? A 15,000 B. 10,000 С. 25,000 D. 0 55. What amount of recovery of loss on purchase commitment should Tartarus recognize on May 9, 2022? A 10,000 B. 15,000 С. 25,000 D. 0 56. What amount of purchases should be recorded on May 9, 2022? C. 425,000 D. 480,000 A 450,000 B. 440,00046. During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. In December 31, 2021 income statement, what amount of loss on purchase commitment should be recognized?
- SG Corporation started operating a branch on May 1, 2020 with a shipment of merchandise billed at P250,000. Additional shipments during the month were billed at P125,000. The branch returned damaged merchandise worth P10,000. Inter-office shipments are billed uniformly at 125% of cost. On May 31, 2020, the branch reported a net loss of P52,500 and an inventory of P150,000. What is the branch net income (loss) reflected in the combined income statement for May 2020?On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. What is the total cost of inventory of the unsold handbags? A. 60,000 B. 66,000 C. 71,000 D. 75,000On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?