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Problem 1: An SME sell goods in exchange for a P340,000 note receivable in two years' time. The cash sale price of the goods is P280,992. The gross profit rate based on cost on the transaction is 30%. Other operating expenses amounted to P50,000. How much is the sale revenue recognized by the SME?
a. P340,000
b. P280,992
c. P64,844
d. P334,156
Problem 2: How much is the profit or loss of the SME?
a. P14,844
b. P(14,844)
c. P46,988
d. P42,944
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