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Question - The following information pertains to installment sales of a Company:Installment sales:
Year 1 - P7,500,000
Year 2 - P9,000,000
Mark-up based on sales: Year 1, 35%, Year 2 P40%
Terms of payment: 10% down payment
Balance is payable as follows: 40% in the year of sale
35% year after sale
25% on the third year
Find the unrealized profit for the installment sales made during year 2 at the end of year 2?
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