On January 2, 2021, Integrity Co. sold merchandise to Honesty, Inc. for P2,500,000. The cost of items to Integrity was P2,000,000. Honesty gave Integrity P500,000 cash and P2,000,000 note payable in 4 annual installments of P500,000 plus 12% interest. Honesty made the 1st principal and interest payment on December 31, 2021. Expenses related with the installment sale is P50,000. How much is the net income related with the sale on installment in 2021?
On January 2, 2021, Integrity Co. sold merchandise to Honesty, Inc. for P2,500,000. The cost of items to Integrity was P2,000,000. Honesty gave Integrity P500,000 cash and P2,000,000 note payable in 4 annual installments of P500,000 plus 12% interest. Honesty made the 1st principal and interest payment on December 31, 2021. Expenses related with the installment sale is P50,000. How much is the net income related with the sale on installment in 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2021, Integrity Co. sold merchandise to Honesty, Inc. for P2,500,000. The cost of items to Integrity was P2,000,000. Honesty gave Integrity P500,000 cash and P2,000,000 note payable in 4 annual installments of P500,000 plus 12% interest. Honesty made the 1st principal and interest payment on December 31, 2021. Expenses related with the installment sale is P50,000.
How much is the net income related with the sale on installment in 2021?
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