INSTALLMENT SALES c.

12,800
d. 5,400
1. BUCOLIC RURAL Co. uses the installment method. Information on 6. How much is the total realized gross profit in 2019?
BUCOLIC’s transactions during 2018 and 2019 is shown below: a. 123,600
2018 2019 b. 352,000
Installment sales 2,000,000 2,400,000 c. 117,400
Cost of sales 1,200,000 1,320,000 d. 90,000
Gross profit 800,000 1,080,000 7. How much is the profit recognized in 2019?
Cash collections from: a. 123,600
2018 sales 800,000 400,000 b. 352,000
2019 sales 960,000 c. 117,400
How much is the total realized gross profit in 2019? d. 90,000
a. 160,000
b. 432,000
c. 592,000
d. 642,000

Please use the following information to answer items 2-4:

INNOCUOUS HARMLESS Co. uses the installment method. On January 1,
2020, INNOCUOUS Co.’s records show the following balances:

Installment receivable - 2018 800,000

Installment receivable - 2019 2,400,000
Deferred gross profit - 2018 176,000
Deferred gross profit - 2019 576,000

On December 31, 2020, INNOCUOUS Co.’s records show the following

balances before adjustments for realized gross profit:

Installment receivable - 2018 -

Installment receivable - 2019 960,000
Installment receivable - 2020 2,400,000
Deferred gross profit - 2018 176,000
Deferred gross profit - 2019 576,000
Deferred gross profit - 2020 1,500,000

Installment sales in 2020 were made at 1/3 top up above cost.

2. How much is the installment sale in 2020?

a. 4,836,000
b. 5,800,000
c. 6,000,000
d. 7,200,000
3. How much is the total cash collections in 2020?
a. 5,840,000
b. 1,440,000
c. 3,600,000
d. 5,640,000
4. How much is the total realized gross profit in 2020?
a. 984,600
b. 1,241,200
c. 1,520,000
d. 1,421,600

Please use the following to answer items 5-7:

THRALL SLAVE Co. uses the installment method. Information on
installment sales in 2018 and 2019 is shown below:

2018 2019
Sales 400,000 640,000
Cost of sales 320,000 448,000
Gross profit rate 20% 30%
Installment receivable - 2018 180,000 60,000
Installment receivable - 2019 288,000

During 2019, THRALL Co. repossessed a property which was sold in 2018 for
₱40,000. Prior to repossession, ₱10,000 were collected from the buyer. The
estimated resale price of the repossessed property was ₱34,000 after
reconditioning costs of ₱6,000.

5. How much is the gain or loss on repossession?

a. 17,800
b. 6,200