CASE 5
The following selected accounts appeared in the trial balance of Susan Company as of December 31, 20x2:
| Debit | Credit |
| Installment receivable โ 20x1 | P150,000 | |
| Installment receivable โ 20x2 | 2,000,000 | |
| Inventory, December 31, 20x1 | 700,000 | |
| Purchases | 5,550,000 | |
| Repossession | 30,000 | |
| Installment sales | | P4,250,000 |
| Regular sales | | 3,850,000 |
| Deferred gross profit โ 20x1 | | 540,000 |
| Operating expenses | 1,250,000 | |
Additional information:
Installment receivable โ 20x1 as of December 31, 20x1 is P1,200,000.
Inventory of new and repossessed merchandise as of December 31, 20x2 is P950,000.
Gross profit percentage of regular sales during the year is 30% based on sales.
Repossession was made during the year. It was a 20x1 sale, and the corresponding uncollected account at the time of repossession is P77,500.
REQUIRED:
Total collections in 20x2v
Gross profit rate on installment sales for 20x2
Loss on repossession
Total realized profit on installment sales, net of loss on repossession in 20x2
Net income for 20x2