Lang Company uses the installment method of revenue recognition. The following data pertain to its installment sales
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Lang Company uses the installment method of revenue recognition. The following data pertain to its installment sales for the years ended December 31, 2008 and 2009:
Required:
What amount should Lang report as deferred gross profit in its December 31, 2008 and 2009 balance sheets?
Transcribed Image Text:
Installment receivables at 2008 2009 year-end on 2008 sales $60,000 $30,000 Installment receivables at year-end on 2009 sales 69,000 Installment sales 80,000 90,000 Cost of sales 40,000 60,000
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