ABC Company
Subject:AccountingPrice:3.86 Bought9
ABC Company. uses instalment sales method Of accounting. During the year, a buyer defaulted on an instalment sale leaving ABC Co with no other choice but to repossess the inventory sold. As of the date repossession, the following data are available:
The instalment receivable balance is P240,OOO.
Gross profit rate is 30%.
The fair value Of the repossessed inventory after reconditioning costs of PI 2,000 is P144,OOO. The normal profit rate is 15%.
S. How much is the gain (loss) on repossession?
a. 43,200 gain
b. 43,200 loss
c. 36,000 loss
d. 36,000 gain
6. How much is the new cost basis of the repossessed inventory?
a. 132,000
b. 110,400
c. 144,000
d. 122,400
Option 1
Low Cost Option
Download this past answer in few clicks
3.86 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 9 times
