1. White Plains, Inc. sales residential lots on installment basis.

The following data was

taken from the accounting records of the company as at December 31, 2019:

Installment accounts receivable, January

       755,000.00
1

Installment accounts receivable,

       840,000.00
December 31

Deferred gross profit, January 1        339,750.00

Installment sales        950,000.00

Complete (1) the realized gross profit on December 31, 2019 and (2) the balance
of the Deferred Gross Profit account on December 31, 2019. 10pts

2. Sarao Motors sells locally manufactured jeeps on installment basis. Data

presented below relates to the company's operations for the last three calendar
years:

2021 2020 2019

Cost of installment
    8,765,625.00     7,700,000.00  4,950,000.00
sales

Gross profit rates on

32% 30% 28%
sales

Installment accounts
receivable, 12/31

From 2021 sales     9,728,125.00

 From 2020 sales     3,025,000.00     8,387,500.00

From 2019 sales     1,512,500.00  4,812,500.00

On December 31, 2021 how much is the (1) total realized gross profit and (2)
deferred gross profit? 10pts

3. Standard Sales Corporation accounts for sales on the installment basis. The
balances of the control accounts for Installment Contracts Receivable at the beginning
and end of 2021 were:

 Jan. 1, 2021  Dec. 31, 2021

Installment
contract          24,020.00
receivable - 2019

Installment
contract        344,460.00          67,440.00
receivable - 2020

Installment
contract        410,090.00
receivable - 2021

During 2020, the company repossessed a refrigerator which had been sold in 2017 for
P5,400 and P3,200 had been collected prior to default. The company sales and cost of
sales figures are summarized below:

2019 2020 2021

Net Sales        380,000.00        432,000.00     602,000.00

Cost of Sales        247,000.00        285,120.00     379,260.00

The resale price of the repossessed merchandise is P2,000 after reconditioning cost of
P300 and a normal gross profit of 35%.

The total realized gross profit on December 31, 2021 and the gain (loss) on
repossession are: 10pts
 

4. Kanlaon Corporation started operations on January 1, 2020, selling home  

appliances and furniture sets both under cash and under installment bases. Data on
the installment sales operations for the two years ended December 31, 2020 and  
2021 are as follows:
                                                                                                                                       

2020 2021  

Installment sales        400,000.00        500,000.00  

Cost of installment sales       (240,000.00)       (350,000.00)  

Cash collections on:  

2020 installment contracts        210,000.00        150,000.00  

2021 installment contracts                     -          300,000.00  

The balance of the Deferred Gross Profit account on December 31, 2021 is:
5pts  
 

5. The following data were taken from the records of Camille Appliance Company
before its accounts were closed for the year 2021. The company sells exclusively on  
the installment basis and it uses the installment method of recognizing profit:

 
 2019 2020 2021  

Installment sales        400,000.00        440,000.00     420,000.00  

Cost of installment
       240,000.00        272,800.00     256,200.00  
sales

Operating
       100,000.00          94,000.00       96,000.00  
expenses

Balances as of
 
December 31:

Installment contract
       220,000.00        110,000.00       28,000.00  
receivable - 2019

Installment contract
       250,000.00       92,000.00  
receivable - 2020

Installment contract
    238,000.00  
receivable - 2021

During 2021, because some customers can no longer be located, the company wrote  
off P9,000 of the 2019 installment accounts and P2,800 of the 2020 installment
accounts as uncollectible.  

 
Also during 2021, a customer defaulted and the company repossessed merchandise
appraised at P2,400 after costs of reconditioning estimated at P400. The
 
merchandise had been purchased in 2019 by a customer who still owed P5,000 at
the date of the repossession.
 

The total comprehensive income on December 31, 2021 is: 5pts