Parker Clothing Company sells its products on an installment sales basis. Data for 1999 and 2000 follow:

a. Compute the net income for 2000 , assuming use of the accrual (sales) basis of revenue recognition.

b. Compute the net income for 2000 , assuming use of the installment basis of recognizing gross margin.

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1999 2000 Installment sales Cost of goods sold on installment sales Other expenses Cash collected from 1999 sales Cash collected from 2000 sales $800,000 $960,000 560,000 720,000 120,000 160,000 480,000 240,000 640,000