Charter Corporation, which began business in 2018, appropriately uses the installment sales method of accounting for its
Question:
Charter Corporation, which began business in 2018, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2018 and 2019:
Required:
1. How much gross profit should Charter recognize in 2018 and 2019 from installment sales?
2. What should be the balance in the deferred gross profit account at the end of 2018 and 2019?
Transcribed Image Text:
Installment sales Cost of installment sales Cash collections on installment sales during: 2018 $360,000 234,000 2019 $350,000 245,000 2018 2019 150,000 100,000 120,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
Requirement 1 2018 cost recovery 234000 65 gross profit 35 360000 2019 cost recovery 245000 70 gross ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
Students also viewed these Cost Accounting questions
-
Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2011 and...
-
How does the fair value method of accounting for a received dividend differ from the equity method?
-
The most common method of accounting for unconsolidated subsidiaries is the equity method. Required Answer the following questions with respect to the equity method. 1. Under what circumstances does...
-
Chiz enterprise reports its gross sales/receipts during the quarter as follows: Sale of computers Gross receipts - computer repairs Sales returns and allowances Sales discounts for early payments...
-
Three parallel bolting forces act on the circular plate. Determine the resultant force, and specify its location (x, z) on the plate. FA = 200 lb, FB = 100 lb, and FC = 400lb. 1.5 ft 45 30 (B
-
Replacement of a machine, income taxes, sensitivity. (CMA, adapted) The Smacker Company is a family-owned business that produces fruit jam. The company has a grinding machine that has been in use for...
-
Andre Co's chief information officer, Robert Ganning, has been asked to present a plan for the development and implementation of a new system. Peter Martin, an internal auditor for Andre Co, has been...
-
Palomar Chemical Company produces three products: ethylene, butane, and ester. Each of these products has high demand in the market, and Palomar Chemical is able to sell as much as it can produce of...
-
The lengths of pregnancies are normally distributed with a mean of 266 days and a standard deviation of 15 days. a. In a letter to an advice column, a wife claimed to have given birth 308 days after...
-
1. Use the Fraud Triangle to analyze the business and audit risks that existed at Diamond Foods during the period of its accounting fraud. 2. How would you characterize Diamond's accounting? Did they...
-
In 2018, Long Construction Corporation began construction work under a three-year contract. The contract price is $1,600,000. Long recognizes revenue over time according to percentage of completion...
-
Charter Corporation, which began business in 2018, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2018 and...
-
A recent annual report for AMERCO, the holding company for U-Haul International, Inc., included the following note: Property, Plant and Equipment Property, plant and equipment are stated at cost....
-
A loudspeaker creates sound by pushing air back and forth with a paper cone that is driven by a magnetic force on a wire coil at the base of the cone. (Figure 1) shows the details. The cone is...
-
Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory Feb. 17 Purchase Jul. 21 Purchase Nov. 23 Purchase 7 units at $46 13...
-
Research a case where a large company was held liable for an item that was defective. How did the company handle the issue? Was there a class action suit, if so, please give the details. A recent...
-
Give a big-O estimate (in terms of n) for the number of additions used in this segment of an algorithm. t := 0 for i 0 to n do for j '= 0 to n do t=t+1 end for end for
-
Describe the use of cost behaviour classification, and Suggest possible cost drivers in determining their manufacturing costs, of 2 manufacturing companies which are Top Glove and Malaysia Steel...
-
The smart speaker market in North America had sales of $2.9M in 2017 and ballooned to sales of $9.0M in 2018. Google-brand smart speakers had a 19.3% share of this market in 2017. This increased to a...
-
Briefly describe the following types of group life insurance plans: a. Group term life insurance b. Group accidental death and dismemberment insurance (AD&D) c. Group universal life insurance d....
-
The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of the year. Service cost for the year was $10 million. At the end of the year, pension...
-
Pension plan assets were $80 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, retiree benefits paid by the trustee were $6 million and cash invested in...
-
Pension plan assets were $80 million at the beginning of the year and $83 million at the end of the year. The return on plan assets was 5%. At the end of the year, cash invested in the pension fund...
-
Una destacada empresa especializada en logstica y transporte de mercancas por va terrestre, ferroviaria y area, se encuentra en un proceso constante de bsqueda de la excelencia operativa. Como parte...
-
un gardien (attendant) aux clients (parking / laboratoire) au parking (tre / faire) Faites attention. N'oubliez pas vos cls (keys)! une tante sa nice (librairie / cinma) au cinma (lire / manger)...
-
The chart of accounts is a:Group of answer choicesfinancial statementexpense reportlisting of a company's accountsuseless tool
Study smarter with the SolutionInn App