What is the net income on december for a company

Assignment Help Financial Accounting

Reference no: EM132805828

A Company sells cars both on installment and cash basis. On March 30, 2019, the Company sold a car to a customer for P525,000 costing P414,000. A used car is accepted as down payment, P128,000 being allowed on the trade-in. The used car can be resold for P160,200 after reconditioning cost of P7,660. The Company expects to make a 20% gross profit on the sale of used car. The balance of the sale is to be paid on a 10-month installment basis starting May 1, 2019.

The customer defaulted payment starting November 1, 2019 and the car was immediately repossessed. The repossessed car was appraised at a value of P93,750 at the time of repossession. The Company had to incur additional cost of repairs amounting to P9,250 before the car was subsequently resold on December 1, 2019 for P128,750 cash to another customer.

Problem 1: What is the net income on December 31, 2019?

A. P64,200

B. P38,450

C. P49,100

D. P40,100

Reference no: EM132805828

Questions Cloud

How much is the total financial revenue over the lease term : How much is the total financial revenue over the lease term? Rachel Company completed construction of a construction equipment.

Determine opportunities to institute change : Determine opportunities to institute change within the mission and vision statements. Propose three ways that teacher leaders can take on a stronger leadership.

Discuss actions and characteristics of effective leadership : The current CEO of QANTAS Alan Joyce is considered a strategic leader. Identify, and discuss the actions and characteristics of effective leadership

What aspects of culture and society : What aspects of the culture and society do you think would affect your decision making if you were sent there as a manager for multinational firm?

What is the net income on december for a company : What is the net income on December 31, 2019? On March 30, 2019, the Company sold a car to a customer for P525,000 costing P414,000.

What the social media profile might look like : Have you ever wondered what William Shakespeare's Facebook profile would look like, assuming he was alive today? Many of the historical figures from.

Threats-strengths and weaknesses of selected company : Determine the opportunities, threats, strengths and weaknesses of your selected company by completing the SWOT matrix in the answer sheet.

How you plan to teach academic science terms : Explain the role academic science terms play in learning science. Provide one example of how you plan to teach academic science terms in your future classroom.

What amount recognize as loss on note receivable discounting : If the discounting is secured borrowing, how much is the interest expense included in the transaction to record transaction cost?

User Account

All Pages