Outlook Corporation sells gas stoves. Its sales had a total of P250,000 during its first year of operation. All its sales were installment sales and it managed to collect only P80,000 in the said year. Outlook repossessed one gas stove after a customer defaulted in payment. The balance of the receivable pertaining to the repossessed stove was P25,000 at the time of repossession. How much is the deferred gross profit at year end if the gross margin ratio is 25%? a. P145,000 c. P170,000 b. P36,250 d. P42,500

Outlook Corporation sells gas stoves. Its sales had a total of P250,000 during its first year of operation. All its sales were installment sales and it managed to collect only P80,000 in the said year. Outlook repossessed one gas stove after a customer defaulted in payment. The balance of the receivable pertaining to the repossessed stove was P25,000 at the time of repossession. How much is the deferred gross profit at year end if the gross margin ratio is 25%? a. P145,000 c. P170,000 b. P36,250 d. P42,500

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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