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How much is the unrealized gross profit at end of year three

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Reference no: EM132767493

These data pertain to installment sales of a company:

Down payment, 20%
Installment sales: P545,000 in year 1; P785,000 in year 2; and P968,000 in year 3.
Gross profit based on cost, 35% (Hint: convert to gross profit based on sales)
Collections after down payment: 40% in the year of sale, 35% in the year after sale, and 25% in the third year.

Problem 1: How much is the unrealized gross profit at the end of year 3?

a. 198,574
b. 211,047
c. 161,166
d. 217,574

Reference no: EM132767493

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