Reference no: EM133088155

Question - Philadelphia Co., an SME, sold goods with a list price of P1,000,000 to a customer on normal credit terms of 30 days interest-free credit. Ten days after the sale, the customer paid the entity P690,000 in full as final settlement of a debt that arose from the sale of the goods. The amount received from the customer included P50,000 Vat collected by the SME in favor of the national government. The settlement amount is net of P200,000 trade discount, P100,000 volume rebate and P10,000 prompt settlement discount. At what amount should the entity measure revenue from the sale of goods?