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Additional Information:
Installment Receivable- 2011 sales, as of
December 31, 2011 120,000
Inventory of new and repossessed merchandise
As of December 31, 2012 95,000
Gross profit percentage of regular sales
During the year 30% on sales
Repossession was made during the year. It was a
2011 sale and the corresponding uncollected
Account at the time of repossession was 7,750.
Compute the total realized gross profit on instalment sales in 2012
and the gain (loss) on repossession in 2012.
14. Gloria Corporation started operations on January 1, 2011
selling home appliances and furniture sets both for cash and an
instalment basis. Data on the instalment sales operations of the
company gathered for the years ending December 31, 2011 and 2012
were as follows:
2011 2012
Installment Sales 400,000 500,000
Cost of instalment sales 240,000 350,000
Cash collected on I/S
2011 I/S 210,000 150,000
2012 I/S 300,000
Additional Information: On January 5, 2013 an instalment sale in
2011 was defaulted and the merchandise with an appraised value of
P5,000 was repossessed. Related instalment receivable balance on
January 5, 2013 was 8,000.
Compute the deferred gross profit on December 31, 2012 and the gain or
loss on repossession in 2013.
15. Jane enterprises uses the installement method of accounting
and it has the following data at year end:
Gross margin on cost...........................66-2/3%
Unrealized Gross Profit........................192,000
Cash collections including down payment........360,000
What was the total amount of sales on I/S?
The post closing trial balance on Sept. 30, 2011 shows the
following balances of certain accounts:
Installment Receivable 2011 100,000
Deferred Gross profit 2011 50,000
The gross profit percentage for regular sales during the
year was 30%.
The accountant made the following entry for the repossession
on a sale of 2011 towards the end of fiscal year:
Repossession 2,500
Loss on repossession 3,750
Installment Receivable- 2011 6,250
The inventory of new and repossessed merchandise on Sept.
30, 2012 amounted to 75,000.
Compute the total realized gross profit for the year
September 20, 2012?
The correcting entry for repossession made on sale of 2011
is:
Compute the net income for the fiscal year September 30,
2012: