Reginald Company, which began operations on January 5, 20x1, appropriately uses the install method of revenue recognition. The following information pertains to the operations for 20x1 and 20x2: 20x1 20x2 Sales P600,000 P900,000 Collections from: 20x1 sales 200,000 100,000 20x2 sales 300,000 Accounts written off from: 20x1 sales 50,000 150,000 20x2 sales 300,000 Gross profit rates 30% 40% REQUIRED: 2. Deferred gross profit on December 31, 20x2 ______________ 3. Realized gross profit in 20x2 ______________

Reginald Company, which began operations on January 5, 20x1, appropriately uses the install method of revenue recognition. The following information pertains to the operations for 20x1 and 20x2: 20x1 20x2 Sales P600,000 P900,000 Collections from: 20x1 sales 200,000 100,000 20x2 sales 300,000 Accounts written off from: 20x1 sales 50,000 150,000 20x2 sales 300,000 Gross profit rates 30% 40% REQUIRED: 2. Deferred gross profit on December 31, 20x2 3. Realized gross profit in 20x2

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter16: Multistate Corporate Taxation

Section: Chapter Questions

Problem 35P

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