In 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition? a. 10, 000 b. (6, 000) c. (14, 000) d. (10, 000)
In 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition? a. 10, 000 b. (6, 000) c. (14, 000) d. (10, 000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition?
a. 10, 000
b. (6, 000)
c. (14, 000)
d. (10, 000)
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