Garden Co. uses the installment sales method. Garden Co. sells a good costing P10,000 for an installment sale price of P16,000. Garden Co. accepts old merchandise as down payment and gives the customer a trade-in value of P4,000 for this merchandise. The fair value of the old merchandise is P4,000. Subsequent cash collections during the period amount to P6,000. How much is the realized gross profit recognized in the year of sale? 3,750 5,966 6,333 6,667

Garden Co. uses the installment sales method. Garden Co. sells a good costing P10,000 for an installment sale price of P16,000. Garden Co. accepts old merchandise as down payment and gives the customer a trade-in value of P4,000 for this merchandise. The fair value of the old merchandise is P4,000. Subsequent cash collections during the period amount to P6,000. How much is the realized gross profit recognized in the year of sale? 3,750 5,966 6,333 6,667

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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Garden Co. uses the installment sales method. Garden Co. sells a good costing ₱10,000 for an installment sale price of ₱16,000. Garden Co. accepts old merchandise as down payment and gives the customer a trade-in value of ₱4,000 for this merchandise. The fair value of the old merchandise is ₱4,000. Subsequent cash collections during the period amount to ₱6,000. How much is the realized gross profit recognized in the year of sale?
5. Garden Co. uses the installment sales method. Garden Co. sells a good costing ₱10,000 for an installmentsale price of ₱16,000. Garden Co. accepts old merchandise as down payment and gives the customer atrade-in value of ₱4,000 for this merchandise. The fair value of the old merchandise is ₱6,000. Subsequentcash collections during the period amount to ₱6,000. How much is the realized gross profit recognized in theyear of sale?
BLITZKRIEG Co. purchases goods for P250,000 under a special credit period of 1 year. The seller normally sells the goods for P220,000 with a credit period of one month or with a P5,000 discount for cash basis (i.e., outright payment in cash). The initial measurement of the payable is Select the correct response: 220,000 200,000 215,000 250,000
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uilder Company uses the net price method of accounting for cash discounts. In one of its transactions on October 15, 2019, Guilder sold merchandise with a list price of P500,000 to a customer who was given a trade discount of 20% and 15%. Credit terms were 2/10, n/30. The goods were shipped FOB destination, freight collect. Total freight charge paid by the customer was P7,000. On October 20, 2019, the customer returned damaged goods originally billed at P60,000. What is the net realizable value of this account receivable on October 31, 2019? Choices: P273,000 P340,000 P233,200 P280,000
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