Twinkle Corporation accounts for sales on the instalment basis

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Twinkle Corporation accounts for sales on the instalment basis. The balances Of the control accounts for the instalment contracts receivables at the beginning and end of 2030 were:

Jan. 1, 2030 Dec. 31, 2030

Instalment Contract Receivable — 2028 24,020 -

Instalment Contract Receivable — 2029 344,460 67,440

Instalment Contract Receivable — 2030 - 410,090

 

During 2030, the company repossessed a refrigerator which had been sold in 2029 for PS,400 and P3,200 had been collected prior to default, The company sales and cost of sales figures are summarized below:

                                                                    Y2028         Y2029        Y2030

Net Sales                                               380,000      432P00      602,000

Cost of Sales                                          247,000       285,120    379,260

 

Twinkle values the repossessed goods at market value. The appraised value Of the repossessed merchandise after reconditioning costs amounted to P1,100. The reconditioning cost is PIOO and normal profit rate is 10%.

 

The total realized gross profit and gain (loss) on repossession on December 31 , 2030;

A 142,500 and (381)

B 172852.50 and (452)

C 172,852.50 and (562)

D 142,500 and (562)