What if COLLECTIONS and GP RATE are not given? How to compute RGP?T-in Merch (MV before RC = FMV ; yung may computation)DownpaymentInst Collection (# of months * monthly inst)TOTAL COLLECTIONS* GP Rate RGP on Inst Sales of the New Merchandise

Look for collection then compute RGPInst A/R, Beg * GP Rate = DGP, Beg(Inst A/R, Def * GP Rate) = (DGP, Def)(Inst A/R, w/o * GP Rate) = (DGP, w/o)Inst A/R before adj = DGP before adj(Collection * GP Rate) = (RGP)Inst A/R, End * GP Rate = DGP, End

Compute GP RatesFor Prior Year/s Sales:DGP, BegInst A/R, Beg

For Current Year:GP [DGP,end]Inst Sales

Total Collections (Cash DP +PP)(Int Inc)Collections as to Principal* GP RateRGP

Cash xxInst A/R xxInt Inc xx

DATECash Collection(Debit)Collection as to Interest(Interest Income)(Credit)Collection as to Principal(Inst A/R)(Credit)Unpaid Balance(Outstanding Principal)

Inst Sales

DP DP 1-3

Monthly Inst Sales 4 * % 5-6 4-7

yearly instalment periodic instalment accounted for separately from GP recognized as interest revenue at the time of cash receipt Portion of the payment applied to principal Considered in the computation of RGP

Periodic Original Balance of Installment A/R (Inst. Sale Cash DP = Unpaid Balance)Payment PVad 1.10 = [(n+1)-1] %

If NO Instalment Payment given: NOTE : Inst A/R w/o is NOT DEDUCTED NADZ

MARK-UP

On Reg Sales ; 20% on sales ( Sales=100%)Sales 100%Cost 80%GP 20%MARK-UP

On Inst Sales ; 130% of cost ( Cost=100%)Sales 230%GP% = 130%/230%Cost 100%= 56.52%GP 130%To close other nominal accounts:Reg SalesxxInt IncxxCost of SalesxxOpExxxInc Summaryxx

RGP (remove any Int Inc)GP on Reg SalesOther Income (Gain on Sale , Int Inc)(Operating Expense)(Finance Cost) (Int Exp)(Loss on Sale)(Loss on Repossession)NET INCOME / (LOSS)

Adjusted Sales (IS-OA/+UA)(Down Payment)(Actual / FMV of Merch)TOTAL PAYMENTS/ # of Inst PaymentsPayment of each Instalment* # of Paid InstalmentINSTALMENT