Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. home surplus, inc. began operation in may, 2011 by

Home Surplus, Inc. began operation in May, 2011 by selling exclusively on the installment basis....

50.1K

Verified Solution

Question

Accounting

Home Surplus, Inc. began operation in May, 2011 by selling exclusively on the installment basis. Using the installment method of income recognition, the company summarized the following data at the end of the first eight-month period: installment sales, P450,000; various expenses, P23,000; accounts receivable, P330,000; and, inventory, P80,000. If the gross margin based on cost is 66-2/3%, the net income was:

a. P25,000

b. P48,000

c. P57,000

d. P80,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Class, here’s an interesting question. What is the 10-K filingdeadline for accelerated filers? What...

Accounting
Q

Describe intracellular trafficking of CI-M6PR, with names of specific molecules involved in the process, and its...

Biology
Q

An accelerator in an automobile is defined as anything a person directly interacts with, resulting in...

Mechanical Engineering
Q

Reflect on the concept of composite and inverse functions. What concepts (only the names) did you...

Advance Math
Q

When you create a transgenic mouse through genetic engineering the altered version of the target...

Biology
Q

Nursing faculty at a local college were interested in seeing if the mean starting salaries...

Statistics
Q

A ball is thrown from a height of 65 meters with an initial downward velocity...

Algebra
Q

Scribbler Ltd. reported the following information: Salaries expense $87,000 Cost of goods sold 494,000 Income...

Accounting
Q

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has...

Accounting
Q

Enumerate, in chronological order, the steps followed in the study and evaluation of internal controls....

Accounting
Q

Stoppard Ltd produces a single product for 22 each. The maximum output of the business...

Accounting
Q

This is my last question of the subscription period. Can you please answer all parts....

Accounting