Reference no: EM132780655

The following selected accounts appeared in the trial balance of the KAD Sales as of December 31, 2018 before adjustment:

IAR - 2017 sales P 6,000       Repossessions P 1,200

IAR - 2018 sales 80,000 Installment Sales 170,000

Inventory. Dec. 31, 2017 28,000

Regular Sales 154,000

Purchases 222,000

DGP - 2017 21,600

Operating Expenses 46,000

Additional Information:

a) IAR - 2017 sales balance as of December 2017 amount to 60,000.

b) Inventory of new and repossessed merchandise as of December 2018 amount to 38,000

C) GP rate on regular sales during the year is 30% based on sales

d) Repossession was made during the year and was recorded correctly. It was a 2018 sale and the corresponding uncollected account at the time of the repossession was 3, 100.

Problem 1: How much is the loss on repossession?

Problem 2: What are the GP rates for 2017 and 2018?

Problem 3: How much is the Net income for the year 2018?