(Installment-Sales Income Statements) Laura Flessel Stores sells merchandise on open account as Well as on installment terms.

Instructions Problems From the data above, which cover the 3 years since Laura Flessel Stores commenced operations, determine the net income for each year, applying the installment-sales method of accounting. (Ignore interest charges.)

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2007 2008 2009 Sales on account $385,000 $426,000 $525,000 Installment sales 320,000 275,000 380,000 Collections on installment sales Made in 2007 110,000 90,000 40,000 Made in 2008 110,000 140,000 Made in 2009 125,000 Cost of sales Sold on account 270,000 277,000 341,000 Sold on installment 214,400 167,750 224,200 Selling expenses 77,000 87,000 92,000 Administrative expenses 50,000 51,000 52,000