own payment: 20% nstallment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 Markup on cost: 35% Collections after down payment: 40% during year of sale, 35% during the year aft ow much is the realized gross profit for year 2020?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The
following information pertain to installment sales of Lapillus Variety Store:
• Down payment: 20%
• Installment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022
• Markup on cost: 35%
• Collections after down payment: 40% during year of sale, 35% during the year after sale, and 25% on the third year.
How much is the realized gross profit for year 2020?
Transcribed Image Text:The following information pertain to installment sales of Lapillus Variety Store: • Down payment: 20% • Installment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 • Markup on cost: 35% • Collections after down payment: 40% during year of sale, 35% during the year after sale, and 25% on the third year. How much is the realized gross profit for year 2020?
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